Friday, January 5, 2007


Gold slumps about $40/oz from the highs this week... Crude oil tumbles about $6 a barrel this week... Copper slides another 30-cents... the CRB hits its 200 week moving average... dogs and cats are sleeping together.

Here's my thought for the weekend... which hedge funds are going to come out of the work in the next few weeks in total meltdown? This commodities rout must have caused carnage somewhere not so much with directional bets, but with spreads and other fun strategies. Surely there are some major walking wounded somewhere out there.

By the way, I've been bearish on copper since the start of this blog back in November. I've opted to move out of my short futures position today after another huge leg lower this week. This is as about as oversold as it gets....
I don't think we get a V shaped quick rebound in these conditions, but a brief respite might be in order.

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