02/19/10: A raise in one of the US Fed's key lending rates has given further credibility to the bottom in the US dollar and presented us with a short entry signal in the Eurodollar market (refer to TTA Special report issued 02/19/10 on Eurodollars and the chart above). While I am not looking for a substantial move higher in the greenback, a nice technical rally to both wash out the weak hands and satisfy some basic technical objectives seems likely - and an event like the US starting to bring its short term interest rates back to 'normal-icy' might just be the cause. Most commodity prices have remained stable to slightly weaker in the face of the US dollar rally with the noticeable exception in Cotton and the meat complex. We know meat prices move in opposite to grain prices so that action isn't a surprise. However, Cotton's move to new highs is eye opening in this market and suggests a further move into the .80's is most likely.
That's all for this issue of the CTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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