WCTS Spotlight for the week of May 29th, 2009

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052909: Downside targets have been hit on the US dollar index. Those playing the currencies should be aware of potentially over-extended short term pairs and act accordingly. Bond markets too are looking to be over extended as interest rates have moved higher in earnest over the past weeks. As a result of this straight move up, short term profit taking ought to be considered in this environment. Even though many of the commodity markets are moving higher, the only market to register a new buy signal this week was Lumber (see this weeks spotlight for more details).


That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com

WCTS Spotlight for the week of May 22th, 2009

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052209: The Euro has now joined almost the entire world in its collective rally against the US dollar. Interestingly, Gold is now the only metal not to break out higher as Silver is now pointing higher along with Copper, Platinum and Palladium (this weeks WCTS spotlight is on Silver). Energies and Grains continue to power forward. Readers of CRI's Newsletter will of course be well aware of my bullishness on the two and my current long positions in their respective ETF's . Wheat still looks like it hasn't popped yet so if there was one market I might pick up a call in, it would be there.

That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com

WCTS Spotlight for the week of May 8th, 2009

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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/

WCTS Spotlight for the week of December 19th, 2008

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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/

WCTS Spotlight for the week of November 11th, 2008

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110708: The US election of 2008 has come and gone. As for the market’s reaction, there has been little change in the underlying trends which might suggest the event itself was unimportant. The US dollar continues to be favored over European and ‘commodity’ currencies. As a result, many of the downtrends we saw over the past weeks shall continue for the time being. Of particular note this week, Eurodollars (short term interest rates that are not guaranteed by the US Federal Government) have finally broken higher in price (lower in yield) suggesting the ‘credit crunch’ is abating.

That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com/

WCTS Spotlight for the week of October 31st, 2008

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103108: In the week prior to the US election the commodities remain well contained within the downward trends established last quarter. The US dollar is continuing to enjoy the rally that was established in the summer - however, the move lower in many commodity markets is looking a little old. This week in particular we look at Wheat. While it is not a buy currently, shrewed commodity traders will notice this market seems to be running out of bearish steam.

That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com/

WCTS Spotlight for the week of October 24th, 2008

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102408: As investor panic is almost at a peak many of the markets followed here at either hitting their downside targets or are very near them. The long awaited correction in the US dollar is now apon us and one should welcome it rather than look on it with distain. Once this rally exhausts itself, one may see commodity prices once again resume their upward trend. Until then, commodity prices in general look to be moving lower in unison. Of particular note this week, longer term US treasury prices have put in a well defined double top on the long term charts. With the anticipated increase in US government bond supply, the market is getting ready for higher long term interest rates. Consumers Beware!

That's all for this issue of the WCTS Spotlight,

Brian Beamish FCSI

the_rational_investor@yahoo.com

http://www.the-rational-investor.com