First off, unemployment is now at 9%. US economy generated 244K new non farm payrolls, 90 percent coming from the private sector.
I picked the 94-95 level as supportin the crude oil yesterday. I am surprised we spiked down there early. Surprised but happy. Its 808 AM and we have bounced 5 cents off those lows and are trading at 99… Talk about incredible volatility… If you don’t have your orders resting and waiting, you’ll get left behind on these moves.
I like buying some cheap silver and gold calls now. The weak longs have been flushed out by the margin clerks. Now the rally can re-ignite.
The volatility is impressive. I had thought we would have taken a week or two to drift down to the 94 support level. I was wrong. If you didn’t have your orders resting there, you missed the opportunity.
I am thinking that the grains will be the next shoe to drop. Ironically, they will break in the face of neutral to friendly fundamentals. When the financial community wants out, they don’t call farmers to see what they think. They just keep dropping sell orders like carpet bombs.
That is all.
CER
