121908: The dramatic up-move in the US dollar has calmed down and is starting to correct. As a result, most of the short trades in the European currencies have hit their respective stops. Interestingly, neither of the commodity currencies (Cdn. dollar & Aussie dollar) have yet to bottom vs. the greenback. Interest rates around the world continue to fall as the economic picture still looks rather cloudy. Similarly, most equity markets continue to point lower even though we are entering a seasonally strong period for stocks. Short trades still dominate the majority of commodities but it is worthy to note the age of these down moves. One ought to expect some sort of counter trend rally relatively soon. Most notably, Cotton prices have bottomed and look to be one of the only commodities currently in rally mode. Is this a leading indicator? Only time will tell.
That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com/
