Commodity Trading & Trend Following

I am far from being negative. However,I find it questionable to believe all the statements coming out of the FED that the bail out has worked and we will avoid an economic depression. Hopefully we will only encounter an economic recession. An economic recession is healthy and wrings out the excesses of the economy.

Jim Rogers is expecting great volatility in forex currency trading. In the forex exchange arena he expects tremendous swings. There comprise many currencies in the global forex markets

Through mergers and Government help there has been a massive consolidation of the banking system. Is this good or bad? What do you think? Think about this….Have you ever thought how hard it is to turn around an air craft carrier or a super tanker. This new economy seems to be replacing the current global economy on a scale of larger is better. It is pretty clear an air craft carrier can not stop on a dime… or be responsive if it needs to turn quickly. Lets face it we are in a global crisis. The banking crisis has really brought on a global crisis.

Gold almost took off past the $1,000 dollar range and now currently $879. This last weeks soft CPI & PPI reports show currently that we are in a deflationary period and that inflation will not be a concern in the near term. However with that said, Copper, Zinc and even Nickel are starting to move up …actually rapidly. Just Gold and Silver are in a down trend ( depending on your time frame).

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Premier Wen Jiabaoג€™s credit plan or Bail out has possibly started to kick in to the worlds third largest economy China. The prices of commodities such as copper and zinc are breaking out. The increasing demand for commodities and products from around the world should be an impetus for growth. Is this just a natural cycle or could Premier Wen Jiabaoג€™s 4 trillion yuan or $585 USD billion stimulus package be the savior of the global recession?

Tea parties are held all over the US. Did you receive any tea party invitations. The Tea parties are a grass roots effort to express dissatisfaction over Obama’s $3.55 trillion budget. This is not single event. There are millions of people going to tea parties

It isn’t like we have gone through enough stress last year, now we need to worry if our Bank will pass the Govt’s stress tests. For the last 2 months 200 federal examiners have worked/audited the nationג€™s biggest banks to determine how these banks would hold up if the recession deepened.

So far we have not seen anything like the stock market crash of 1929. The stock market crash of 2008 has been unforgiving. Did we just experience a Bear Market Rally? Is the SP running out of gas? Intel Corp said it faces a ג€œfragileג€ economy. J.P. Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac all are stepping up foreclosures on delinquent homeowners. So much for the Obama administration’s housing-rescue plan. Will the unemployment rate exceed 10%? The volatility has been great, stock investing has been tough. Is there another Black Tuesday lurking on the horizon?

Lets face it… it is tough to make a buck these days..The interest rates on the US dollar are virtually zero. Astute investors and Hedge Funds have been involved in foreign currency trading for years.