Commodity Trading & Trend Following

Everyone seems to want to know when they can pick up all the bargains in the market. Seems that risk is a forgotten word.There are those that think that this is simply a BEAR Market rally. There have to be reactions and markets do not go down forever. The truth is only time will tell. The fact is the Dow rose 39.51 points, or 0.5%, to 8017.59, its highest close since Feb. 9. The Nasdaq has risen 25% during its four-week winning streak.
Highlighting the decreased awareness of risk has been the following;Treasury prices dropped, now the yield on the 10-year note is pushing towards 3%. Gold slipped under $900 an ounce ( today it is at 879.00. The Chicago Board Options Exchange Volatility Index, ( The VIX) a technical gauge of investor anxiety, sank 5.6% to fall under the 40 mark. The dollar climbed above 100 yen.

So are we safe to get back in the water ( as in the shark thriller Jaws).Again..this is what makes a market. However lets really examine what has really happened. The central banks have flooded the world with liquidity…which could quite possibly lead to massive inflation. Have the banks started lending freely, No. Are foreclosures subsiding, No. Are job losses stopping or has hiring started. No! The unemployment rate jumped 0.4 percentage point to 8.5%, the highest since November 1983. There was a weaker-than-expected reading of service-sector activity. This demonstrates continued weakness.
Putting another fact on the table. In the Great Depression there were more than 15 ralleys greater than 15% each.
Time will tell. Be flexible. Do not have any opinions. If the market has bottomed you will still have alot of chances to make money. Have a plan. Be aware as much as the stock market can go to 5000…it can go to 15000.

New Dollar Yen Relationship revealed:
This video explains step-by-step how to analyze the dollar and
its relationship to the Yen.

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