Money Flowing back into Commodities

Note the CCI chart and the nearly vertical lift over the last week. Money is pouring back into RISK ASSETS as the Dollar heads lower and the Fed keeps interest rates so low that money is free. This is the perfect environment for the wild-eyed speculator, especially the hedge fund types, who ADORE LEVERAGE and will shove as much money as they can wrap their fingers around into the commodity sector in anticipation of inflationary price rises.

By the way, just take one look at the following chart of unleaded gasoline if you have the stomach for it. Every time you head to the gasoline pump and fill up, you can bow down and pay homage to the Fed for their “gift” of higher fuel prices. After all, who gives a damn about the average consumer and retiree when Wall Street profits are on the line. That, and the current occupant of the White House’s re-election chances….

 

Author: Trader Dan, specialized in commodities like gold & silver

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