Monday, January 4, 2010

Commodites Lead the Rally As We Enter 2010

"Happy New Year"!!! What a way to start off 2010. The US Dollar pulled back today and the same trades that worked last year continued to work today. Commodities, tech and now financials. I continue to worry near term about the dollar, the Jobs Report is this Friday, many expect a positive number of around 25,000 jobs. Now if the number beats expectations, that could mean a dollar rally, thus the metals and energy could selloff. This has me concerned and don't forget on Wednesday we get the ISM Service number as well as the FOMC minutes.
RIMM was downgraded to HOLD & PT of $70 from $90 by GMP Securites today, I suggest one be a buyer on weakness.
On the energy sector, Crude OIl ($WTIC) was up on Russian news as well as a extreme cold weather in the NorthEast. I've posted several times over the last few weeks that oil was set to breakout soon, WATCH that $82 level! Again it lags gold's move by 4 months and it is at an inflection point currently. I'm still holding to my $95 per barrel target. Itz Pix have been RIG & PDE, that both benefit from oil as well as natgas drilling.
Silver lead the way higher on the metals, followed by Palladium, on the Itz Pix metal stocks, Silver Wheaton (SLW) lead the pack.

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