India took delivery today of 6.7BB in Gold from the IMF…That bit of news, along with the stock indexes holding up surprisingly well in the face of the bearish news from London regarding RBS and Lloyd’s continued restructuring, are the top stories..
As I wrote this morning, we are trading crude oil in the grains… crude oil is sharply higher, ditto for grains…
We have crude pushing higher, gold posting a high at 1084.70, Silver joining in with a high at 17.8, still a buck lower than its high last month at 18.15…
Corn Wheat and Beans are all moving higher in sympathy, with SX up over 1020, looking like it wants to test the recent high at 1027…WZ is up at the 487 level, looking at 500 and then 528 as upside targets…CZ is at 393, looking at its recent high at 402 and 414.
Will these prices hold, or will the they be high enough prices to see some fresh selling as we hit these levels? Along the way we will have volatility in the grains mirrored by the volatility in the crude oil… Ditto for the US Dollar…
Stocks most likely will chop around, as the new buzz is weather or not the FED will begin raising rates… That speculation will keep the financial press drooling over the next few weeks… Finally something new to talk about besides sub-prime, tarp money, and the multi million dollar bonuses for bank employees at banks that still owe tarp money.
Over the next few weeks, we will be hearing ad-naseum about the flavor of the month topic which is the “DOLLAR CARRY TRADE”… Of course if the crude can manage a rally up to the 100 dollar a barrel level, then we’ll start hearing about price controls and windfall taxes for the US oil companies who have the nerve to make profits…
Finally, we are beginning to head into the Holiday Markets…Typically thinner trade than usual…as if it could get any more choppy and skiddish.
Good Trading