050809: The US dollar is breaking down vs some of its major trading partners as money leaves the 'safe haven' of US treasuries on the expectation that global economic growth will once again resume (please refer to RI's most recent special report on the Australian dollar for more). One result of the perceived end of 'the crisis' - bond markets are breaking down in earnest. It should be noted that the crash of 1987 was preceded by the bond market breaking down in the spring of that year. While the Dow and S&P 500 are still pointing lower, many other stock index's are moving higher in a classic 'V' shaped bottom. These lows ought to be tested again in the coming months if not quarters. Lets hope it doesn't come in just one day. Commodity prices are moving higher with notable price action in Heating Oil (Crude and Unleaded already moving higher) and many of the Grains. This week's spotlight is on just this market....watch out food prices!
That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com/
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