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Commodities Soar - But Volatility Works Both Ways

Is it just me, or does this whole picture not look like a bad reproduction of an M.C. Escher print with a little Salvador Dali and melting clocks thrown in?

Friday Outlook: Commodities, Global Markets

I see a confluence of a large number of different types of investors in similar market segments that you wouldn't have seen in unprecendented circumstances.

Yes, the banks are buying their own bonds and the the FED is buying treasuries. Individual investors who have retired or are close to it have been told to buy corporate bonds and treasuries as safe havens. If I were 65 or older and had avoided the mess of last Fall, I would not be eager to "get back into the market".

You also have younger investors, day traders, portfolio managers, etc. who are all chasing the returns; either being highly speculative or not wanting to underperform others in this surprise continued move up.

And then you have the HFT programs and the Goldman Sachs of the world who know how to take advantage of the uncertainty and bi-polar nature of the market vs. economy.

I'm certain there has been a desperate push by the FED and banks and investment companies to get money off the sidelines and back into the market. It will either boost their liquidity and encourage more money to come in as it goes higher, or it will provide the chips for the more seasoned players to take off the table from those not quite as good at poker or placing their bets on the craps table.

The more people in the casino the more money for the house and experienced players and the cocktail servers, dealers, and bartenders. $5 bets at the craps table, $2 one-deck balckjack, and double odds Pai-Gow payouts - Don't you want to join in the fun?