Commodities Essential - January 6, 2012

Jobs, the US dollar, and the impact on commodities. 


 


A case is developing that favors US assets. Economic recovery will likely benefit US stocks; US treasuries will continue to look better than counterparts until a large degree of safe-haven buying recedes and growth/inflation expectations drive interest rates higher.


 


But there is a wild card - the US dollar.


 


For the most part, the inverse correlation between the US dollar and stocks, as well as the positive correlation between the US dollar and Treasuries, could throw a wrench into the mix.



Commodities Essential. 6 January 2012


 


 


Trade Essentials.


 


Adjust the stop-loss on ZSL. I remain bearish on silver, but technically price is at a pivotal area that could change the outlook rather quickly, especially if silver begins to follow the general risk appetite mood which does not appear as bearish at this juncture. I think it makes sense to reduce the risk on this position and move the stop-loss to breakeven entry (roughly $13.58):


 


CANCEL AND REPLACE your order to sell all shares of PowerShares DB DoubleShort Silver Fund, symbol ZSL, at $11.89, STOP. NEW PRICE: $13.58, STOP; this order is good till cancelled.