News this morning that GS recommended clients book profits on long commodity positions in anticipation of a short term correction should be taken for what it is - their clients may be long but GS is short.
The US Dollar has breached a technically significant level of chart support near the 75 level basis the USDX. There now remains only one subsequent level of support just above 74 before the greenback has nothing but air between it and its all time low. If it fails to recover 75 before the end of the day, it is on track to test 74.
Bonds have taken off to the upside again as traders are running away from risk trades as news filters out about the nuclear disaster in Japan becoming further aggravated. Talk of a global slowdown is the order of the day.
I bring this up because even though risk trades are being lifted and there is some Yen carry trade unwinding this morning, the US Dollar is abysmally sick on the price chart. It is not getting any safe haven bid. Makes me want to rush out and sell gold and load up on more US Dollar denominated paper!
The widespread selling in commodities is indiscriminate today - it is related to money flows once again as even the grains are being sold in spite of the strongly bullish set of fundamentals in that complex.
Have you ever noticed how insane all this must look to unbiased spectators? Goldman says: "SELL" and the world stops eating!
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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