Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Wednesday, November 12, 2008
Crude Oil Heading to Below $50 / Commodities / Crude Oil
As crude oil continuously declines, it reinforces what mid-term economic models have suggested for several months; that oil prices should remain in a downtrend until the end of the business cycle in 2010. Global economic activity, coupled with supply considerations and U.S. dollar movements are the overwhelming forces behind commodity price adjustments.Read full article... Read full article...
Wednesday, November 12, 2008
Crude Oil Heading Into Severe Oversold Territory / Commodities / Crude Oil
Yesterday's break in crude oil and downside follow-through from the 7-year trendline at $61.60 to new bear-market lows at $56.35 has accelerated into a new downleg that is pointed right for a test of the Jan 2007 low of $49.90 next. Such a decline represents another 12% on the downside, which should press weekly oil into relatively severe oversold territory for oil and its related US Oil Fund ETF (AMEX: USO). Only a rally that sustains above $62.00 will begin to repair the technical damage inflicted during the past few sessions.Read full article... Read full article...
Wednesday, November 12, 2008
Investor Capitulation in Metals and Mining Stocks Presents Great Buying Opportunity / Commodities / Metals & Mining
This is because the use of copper is so widespread throughout our lives. Most of the appliances in your house use copper: the fridge, the dishwasher, the microwave, and the washing machine just to name a few.
By the time you add up the electrical wiring, pipes and so on, the average home uses 400 pounds of copper. And your car? Another 50 pounds.
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Wednesday, November 12, 2008
Commodity Super-Cycle, Mining Sector Rotation, China Economics, Copper Insight / Commodities / Metals & Mining
Commodity Super-Cycle - Recent commodity weakness could be explained merely as a huge sell-off within a longer-term bull market in basic materials, which has years to run. And while inflationary conditions are generally the most favourable for commodities, scholars note that this asset class did perform fairly well during the extreme deflationary era of the 1930s ( analysis of that era found here ). The Reuters CRB Futures Index is a bellwether physical commodities indicator, the 10 year weekly chart (seen to the left) shows the long uptrend from 2002 - 2008 and ferocious break down within the last few months.Read full article... Read full article...
Wednesday, November 12, 2008
Junior Mining Stocks Capital Destruction and Preservation / Commodities / Gold & Silver Stocks
With feet planted on the ground and eyes trained on balance sheets, Brent Cook has earned a reputation for recognizing which juniors have the best chance of beating the odds and where rocks have the greatest potential for producing profit. An experienced professional geologist who has examined properties in more than 60 countries and learned the investment side of the business from master Rick Rule, Brent inherited investor/analyst editor Paul van Eeden's newsletter in February. He repurposed it into Exploration Insights, and in this exclusive interview, shares some of his insights with The Gold Report readers.Read full article... Read full article...
Wednesday, November 12, 2008
Gold and British Pound Tumble on Deflationary Recession / Commodities / Gold & Silver
THE PRICE OF GOLD dropped $10 an ounce in the first-half of London trade on Wednesday, sliding to a 6-session low as Asian stock markets closed down for the day and European equities gave back an early 1% gain."Sentiment [in the Gold market] is still pretty negative," reckons Narayan Gopalakrishnan, a trader at metals refinery group MKS Finance in Geneva, Switzerland, speaking to Bloomberg.
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Tuesday, November 11, 2008
How to Play the Commodity Bottom / Commodities / CRB Index
Special Report Update by Zaner's Research Partner, the Hightower Report - Larry Schneider of the Zaner Group ( http://www.zaner.com/ ) invites you to read their Special Report Update; written by Zaner's research partner, the Hightower Report: One can't know if the measures to contain the credit crisis will ultimately result in a favorable resolution. One also can't determine if the political change in Washington will improve or impede the economic situation.Read full article... Read full article...
Tuesday, November 11, 2008
Gold follows Stocks Lower on Continuing Yen Carry Trade Unwinding / Commodities / Gold & Silver
GOLD PRICES slipped early in London on Tuesday, dipping below $740 an ounce as the US Dollar and Japanese Yen rose on the currency markets while world stock markets and commodity prices fell once again.Read full article... Read full article...
Tuesday, November 11, 2008
Gold Rallies as Goldman Sachs Share Price Crash / Commodities / Gold & Silver
Gold and silver were up another 2% yesterday as bargain hunters continue to bottom feed. Oil and most commodities were somewhat higher on news of the Chinese $0.6 trillion stimulus injection while the dollar was flat and the pound fell again (reaching a new low against the euro) due to the sharply deteriorating UK economy.Read full article... Read full article...
Tuesday, November 11, 2008
Gold the Supernova Metal / Commodities / Gold & Silver
Edward Wray writes: It might be refreshing for a moment to back away from all the Sturm und Drang of the Dirtbag economics chaos and return to a simpler time when Andy might have said to Opie, "Do you see that! That's a silver coin boy, and ifin you save enough of these in your piggy bank, you might just get out of Mayberry and become a famous movie director. Really Pa?"
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Monday, November 10, 2008
Stock Markets Jammed Higher Before Final Capitulation / Commodities / Gold & Silver Stocks
This current batch of investors we have in the equity markets are for lack of a better term, incorrigible, meaning beyond hope, because just when it appeared a genuine capitulation to the downside was possible, stocks are being jammed higher overnight yet again. That being said, and never the less, we cannot fully discount the possibility this bounce will not be something ‘more substantial' however, which would be consistent with the notion we put forth over the past few days that equities bounce here only to fail in early November in a retest of present price levels. Unfortunately, without a panic blow-off to the downside this morning, such an outcome becomes more probable now from a sentiment related perspective, where for this reason we will need to follow open interest put / call ratios very closely in coming days.Read full article... Read full article...
Monday, November 10, 2008
Gold and Silver Stocks at Historic Lows Relative to Gold Price / Commodities / Gold & Silver Stocks
THE TIMELESS PRECIOUS METAL FUND
THE TIMELESS ENERGY FUND
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Monday, November 10, 2008
Gold and Stocks Gain on China's $586 billion Economic Stimulus Package / Commodities / Gold & Silver
SPOT GOLD PRICES rose sharply during Asian and early London trade on Monday, adding 2.4% from last week's close as world stock markets also rose on news of a 4 trillion Yuan stimulus package ($586bn) from the Chinese government, plus an extra $40bn of US government aid for troubled insurance giant AIG.Read full article... Read full article...
Sunday, November 09, 2008
Agri-Foods Long-term Opportunities Amidst Hedge Funds Deleveraging / Commodities / Agricultural Commodities
Despite ravages brought on by joyful liquidation of hedge fund industry, Agri-Food prices continue to show superior relative performance when compared to equities. That conclusion is readily apparent from this week's first graph. In it are plotted our Agri-Food price index and the S&P 500. As ignorance of complexity of commodities is widespread among investment community and in particular the business media, investors need to make an effort to be better informed. Commodities are both not a homogeneous asset class and an incredible investment opportunity.Read full article... Read full article...
Sunday, November 09, 2008
Gold Trades Sideways Amidst Continuing Bearish Trend / Commodities / Gold & Silver
Having been away last week didn't seem to have made much difference. Gold is just about where it was when last I reviewed it here two weeks ago. The best that can be said is that it is building strength while moving in a basic lateral direction.
GOLD : LONG TERM - Since I last showed the long term P&F chart of gold in my 2008-10-17 commentary it had made a move to lower levels and then moved in a sideways path. It has formed a strong resistance at the $765 level so a move to $780 would be an upside break. It might also be a reversal to the bull as the down trend line is very close to that point.
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Sunday, November 09, 2008
Monetary Reform: Gold And Bills Of Exchange / Commodities / Gold & Silver
Address before the Civil Society Institute at Santa Clara University, November 3rd 2008 - The Great Depression of the 1930's was not due to the 'contractionist propensities' of the gold standard as alleged by John M. Keynes. Nor was it due to fractional reserve banking as alleged by Murray Rothbard. Rather, it was due to the government's sabotaging the clearing system of the international gold standard, the bill market.Read full article... Read full article...
Saturday, November 08, 2008
Bob Moriarty: Laying Out a Feast for Stock Bears and Gold Bugs / Commodities / Gold & Silver
In this exclusive interview with The Gold Report, 321gold.com founder Bob Moriarty provides abundant food for thought about the continuing U.S. financial debacle. Unlike many other observers, he foresees a short-term rally in the stock market but paints a bleak longer-term picture. He expects the ship of state to sink like the Titanic, with precious metals holdings and other “things” the only safety nets on board. Not one to whitewash his opinions, Bob seems to be right more often than not but also freely admits it when he makes mistakes. As he puts it, “When my theories don't match the facts, I revise my theories.” We conducted the interview over a week ago and all of his predictions seem to be coming true. So far.Read full article... Read full article...
Saturday, November 08, 2008
Greenspan and the Gold Standard: Thinking Out Loud / Commodities / Gold & Silver
I wish some Congressman would have had the courage to ask Greenspan why he abandoned his principles he so eloquently (and correctly) wrote about in 1966 before becoming a government sell out like the rest of them (rather than Grandstanding, but nothing new with that).Read full article... Read full article...
Saturday, November 08, 2008
Nationalization of Natural Resources is Theft of Private Property / Commodities / Nationalization
For years, the Canadian operator of a huge Venezuelan gold project known as Las Cristinas has been seeking an environmental permit to start digging. Well, Crystallex International Corporation can stop waiting--the mine is being nationalized as part of dictator Hugo Chavez's long-running program of socialist takeovers. “This mine will be seized and managed by a state administration” with help from the Russians, said Mining Minister Rodolfo Sanz.Read full article... Read full article...
Friday, November 07, 2008
Gold Set to Break Lower / Commodities / Gold & Silver
The streetTRACKS Gold ETF (NYSE: GLD) pattern offers an inverted view of the PowerShares DB Gold Double Short ETN (AMEX: DZZ) and shows the bearish coil pattern at the low end of the Sept-Oct downmove, which should resolve to the downside after the conclusion of the sideways pattern. I am establishing an initial model portfolio position this morning in case the coil is complete here, and will add to the short (DZZ) position if gold (GLD) climbs towards the 74.00 area and 36.80 in the DZZ.Read full article... Read full article...