Wednesday, May 25, 2011

Copper & Silver: 'Risk On'

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QE2 ends in a few weeks and most likely traders/investors are questioning, what will the Fed do next? We've seen some of the froth come off the commodity sector thus the Fed looks at that as a lower inflationary threat. But the other mandate Bernake and gang have is to create jobs.

With fears that recent US economic data has been weak and concerns of a slowdown in growth for the emerging markets, traders are starting to suspect that the Fed doves are going to have their way and that some sort of stimulus is going to be forthcoming from the Fed. It maybe an early call...but the Fed is going to adjust and perhaps become more accomodative. With recent comments from Fed governor Bullard and Goldman's bullish commodity call, watch commodites begin to move substainally higher.

You can see the move in copper & silver lately..."risk on".




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2 comments:

Anonymous said...

I tend to think market volatilty is going to going to pick b/c the VIX looks to be building a nice base.

http://brettsstockmarketpulse.blogspot.com

itzstockchartz said...

Historically the 15 level years ago was considered high and the norm level was 10. Here's a old post on the $VIX http://itzstockchartz.blogspot.com/2010/07/volatility-index-vix.html

On this weekly chart look when the VIX crosses over & under its 40 week moving average http://bit.ly/kCmkhp

thanks for your comments and following ITZ
Best Regards