wednesday washout

It's been a week since I started a thread; so I thought I post one today.

One week ago I suggested getting into shorts would be a good idea as all sorts of turn dates were hit and it traded to expectations.

Now despite believing there is just a bit more to go to the downside there are a few things which I find interesting in the commodity space.

I am finding it very interesting that copper and nickel has not been smacked to the degree that gold has. Considering it has record inventories copper specicifally is holding its uptrend.

I think crude oil should go into your long radars very soon the 200ma sits around the $70 mark.

So the USD, hooray it is busting to the upside and we are having the all expected violent short covering rally that was anticipated except it has come one month late than first anticipated.

With this in mind, crude & copper have not been getting smashed but gold continues to do so. The gold run is OVER the bubble has POPPED.

Watch oil at $70 as I think it will be the catalyst in signalling a bottom in the equity markets in the short term. I would not be shorting anything here...USD will continue its rally but likely to fade out in about a month.

Good Luck.