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Commodities had sold off hard and were oversold. Firms like Goldman Sachs (NYSE:GS) know this and are anxious to take advantage and catch investors leaning the wrong way. So they’ll take big long positions for their proprietary accounts and release the accompanying bullish report. Doing this in late summer with markets stretched and with light volume can make the month for their trading desks. Bully for them!

Equities look quite sick and seem as if nothing will happen trend-wise until some of the major negatives overhanging the markets are resolved. That means FRE/FNM/LEH coming to some final result.

Tensions with the Soviets remain high and no doubt the latter is willing to use energy as a weapon to crush dissent and threats of any kind from the West. So, gold prices rise along with everything else starting with a 'C' while the emerging dollar rally may be snuffed-out.

One thing’s for sure, the week ends today. Enjoy your weekend.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in IWM, IVE, XLY, XLV, UGE, IEF, DBC, DEE, GLD, DZZ, UUP, EFA, EFU, EEM, EEV, and FXI.

Source: Friday Outlook: Commodities, Emerging Markets