Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Commodities Will Move the Markets Again in the Week Ahead

The real story, by far, last week was the price collapse of global commodity markets. Materials prices declined across the board from metals to crude oil to the grain markets.

This decline will be a huge educator for all of whom I refer to as the amateur commodity traders out there. As many of you know, I think that for many investors commodities are included in their portfolios with no rational forethought. Remember, buying a commodity is not like buying stock in an operating company. The problem is that for many there is no rational behind these investments. There are no balance sheets, no financial stats, just a bunch of emotional and fundamental hunches.

So when the selloffs begin, no one can come up any logical reasons for the price that these are really worth in the markets. The reality is everyone just panics and sells out. We are seeing this in silver and beginning in gold. I have discussed several times over the past couple of months that gold is in its final leg up. This finally sequence is the most risky, especially because there is no reliable way to estimate where the prices will stop advancing and begin a full blown price collapse.

china stocks,yuan,dollar,chinese gold,chinese economy,chinese stocks,china economy,china stock,china stock digest,global profits alert,jim trippon

This is the case for many commodities in the current environment as prices become very volatile. The prices can snap back as fast as the decline, only to resume the decline out of nowhere. During the next several weeks, the education of risk in commodities will be best illustrated with this volatility. This action could also signal the beginning of a new trading range for the stock market.

So will the next move be a downward one for stocks? The odds right now are we are looking at a week or two of lower stock prices. This does not mean an end to inflation or a strengthening of the dollar. It just means that we can expect price weakness in equities over the next week or so. Of this also spells opportunity.

Show what moves should we make now? I will get into that on my next commentary.

PS: I will be making 4 presentations this week at the Las Vegas Money Show. I hope to see you there!

Click HERE to know more about the China Stock Digest: China Stock Market Research & China Stock Analysis
How to Score Big on the World's Second Largest Economy...

China surpassed Japan as the world's second largest economy, right behind the U.S. as the strongest on the planet.

Chinese companies are making money hand over fist, and will continue to do so for years into the future.

For now, the Chinese stock markets are taking a break from their recent torrid pace.

That won't last much longer.

It's time to position your portfolio for potential monster gains the likes of which you've never seen before.

Click HERE for the exciting details on how to score big in the Chinese stock markets from the "Sage of Shanghai"...

For more information and archived issues, visit

Global Profits Alert (GPA) is published by Trippon Financial Research, Inc. a financial media organization with offices in the United States, Hong Kong and Mainland China. GPA is written by Jim Trippon in conjunction with George Wolff, Sunny Wang, Todd Shriber, Kelley Damiani and J. Daryl Thompson.

Would you like to republish this article? Global Profits Alert issues can be republished, as long as the republished issues contain the name of the author(s) and the following short paragraph:

This information was brought to you by, a publication of Trippon Financial Research, Inc. publishes information on Investing in the China stock market and emerging markets, dividend stock and income investing, exchange traded funds (ETFs), green energy stocks, technology stocks, global market trends and other investment information. To view archives or subscribe, visit