Current Markets for March 3, 2009
It appears that a run at 332 is on for March Corn. Yes, we have moved into the May contracts in all the markets, but March is still the front month and all my projections are still for that month. It just means more to the downside in all the grains for awhile.
Financials are trading below recent support, but at least they still move opposite Indexes. The rallying of the US dollar and falling Indexes make Notes attractive considering the perilous position of most European currencies. It’s the “better a return of your money than return on your money” scenario. As soon as the George Soros gang finish demolishing the eastern European emerging nation’s currency, Poland’s Zloty, the Hungarian Forint, the Czech Koruna, the Euro will tumble with the Pound. Then all that would remain is selling the US Dollar. More money; more money!
The final dagger in the dollar may make central banks distribute a Gold backed world currency to which all other currencies are tied (Breton Woods, 1944 revisited). Then a CB would have the luxury of ratcheting up the printing press for national currency distribution while maintaining a safe and stable international currency for bank to bank transactions. The best of both worlds could occur if the price of gold was frozen to International Bank “units” and public ownership was illegal except as jewelry.
The Indices need a break. I wouldn’t want to see everyone united in selling out on the same day. That would be too easy, too quick to the bottom. We need a “Relieve the Pain” rally in the stock markets; something that convinces all the small speculators that the “Bottom” is in so they can commit the last of their reserves to buy and hold.
Crude Oil reserves in Exxon amount to a larger cash reserve than any competitor’s net worth. Look for them to start buying out competitors in a large way in 2009.
Meats look like the final of the sell off is underway. They should rally soon.
