Filed under: Trader Dan Norcini
Dear Friends;
Please note the CCI chart and the US Dollar chart as the CCI has plowed into new all time record highs today once again and looks to be setting a new all time record high weekly close as well. The grains and softs are leading the way with wheat now firmly above $8.00 and pushing towards $8.50 with corn shrugging over a bearish technical sign from Wednesday and going on to set a fresh 30 month high in price. Coffee, sugar and cocoa are all strong and lumber is at limit up. One thing is certain – there is yet no letup in the inexorable rise in food prices.
Platinum and palladium are higher today and copper thus far has held support near $4.20 and moved back up once again.
The strength in the base metals suggests that silver should stabilize soon with gold in a following role to it for the time being.
Crude, while weak today, is holding near $89 and natural gas is higher. Unleaded gasoline is up 4 cents a gallon here near midday.
Also note that it is no coincidence that the Dollar has succumbed to further selling pressure today as fears regarding European sovereign debt woes have taken a back seat to the long term, deeply entrenched structural problems in the US concerning its enormous indebtedness and further QE.
One last thing – note the game being played with the bond market by the Fed as I commented on yesterday. There was ZERO downside price action in the reopen of trading for bonds early in the evening yesterday after they were crushed during the session. Upon the reopen they immediately popped higher, saw NO FOLLOW THROUGH selling of any kind (not normal), and are up more than half a point today even as the commodity sector is showing fresh signs of strength and the equity markets are also strong. In short, the officially sanctioned rigging of the US bond market continues.
No doubt China is taking notice while the US calls it out for currency manipulation.
DAN'S THREE CHARTS:
http://jsmineset.com/wp-content/uploads/2011/01/January2111Gold.pdf
http://jsmineset.com/wp-content/uploads/2011/01/January2111CCI.pdf
http://jsmineset.com/wp-content/uploads/2011/01/January2111USD.pdf
Please note the CCI chart and the US Dollar chart as the CCI has plowed into new all time record highs today once again and looks to be setting a new all time record high weekly close as well. The grains and softs are leading the way with wheat now firmly above $8.00 and pushing towards $8.50 with corn shrugging over a bearish technical sign from Wednesday and going on to set a fresh 30 month high in price. Coffee, sugar and cocoa are all strong and lumber is at limit up. One thing is certain – there is yet no letup in the inexorable rise in food prices.
Platinum and palladium are higher today and copper thus far has held support near $4.20 and moved back up once again.
The strength in the base metals suggests that silver should stabilize soon with gold in a following role to it for the time being.
Crude, while weak today, is holding near $89 and natural gas is higher. Unleaded gasoline is up 4 cents a gallon here near midday.
Also note that it is no coincidence that the Dollar has succumbed to further selling pressure today as fears regarding European sovereign debt woes have taken a back seat to the long term, deeply entrenched structural problems in the US concerning its enormous indebtedness and further QE.
One last thing – note the game being played with the bond market by the Fed as I commented on yesterday. There was ZERO downside price action in the reopen of trading for bonds early in the evening yesterday after they were crushed during the session. Upon the reopen they immediately popped higher, saw NO FOLLOW THROUGH selling of any kind (not normal), and are up more than half a point today even as the commodity sector is showing fresh signs of strength and the equity markets are also strong. In short, the officially sanctioned rigging of the US bond market continues.
No doubt China is taking notice while the US calls it out for currency manipulation.
DAN'S THREE CHARTS:
http://jsmineset.com/wp-content/uploads/2011/01/January2111Gold.pdf
http://jsmineset.com/wp-content/uploads/2011/01/January2111CCI.pdf
http://jsmineset.com/wp-content/uploads/2011/01/January2111USD.pdf
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