"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

Trader Dan's free work will soon be available at www.traderdan.biz

Thursday, September 13, 2012

Commodity Sector Looks Set to Leg Higher

The long term monthly chart provides an excellent perspective of the hard asset sector. Note how back in 2008 when the credit crisis first erupted and a deflationary mindset took over, that the sector crashed to earth in a brutal fashion. It took two doses of QE to jam it north, the first ending before the second round was announced. Of course, the second round of QE provided the fuel to send the index soaring to a new record high.

Once again deflationary expectations took over due to the European Sovereign debt crisis, a slowing Chinese economy and of course, a US economy in the toilet. Down goes the commodity index once again in a big way.

All that did was to pave the way for yet another round of stimulus, one from the ECB, another from the Chinese authorities who are doing a government works project and now today's QE 3, courtesy of the scam artists at the Fed.

Any guess where this index is now going to go? If the chart is accurate, it should make a push towards 600 where it fill face a big test. If it plows through the 600 level, heaven help us all because the odds will then increase of it pushing back towards 650 and higher.


  1. Jim Sinclair has posted a picture of you from the old days i guess

  2. Indeed Lisa, I can see Dan, but who is the little boy? :) :)

    I follow gold reaching the top of the flag I wrote, on the 1775 $ area (with 1785 Fibo 62% in the same resistance area).
    To me, upper resistance for silver is around 35.50.
    I hope for a correction so that I can buy a bit more at lower prices, but who knows, once the train is fast, when it will slow down...?
    Thanks for all these comments Dan :)

  3. actually I am sizing up that hog to determine whether or not to use it as margin for another hog position in the futures.

    1. Dan, when you get done with that hog let me know, my smoker is empty still and I'm needing a nice big load of ribs to fill it up!
      Have a great weekend in the Big Sky!
      Thanks, John

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