Wednesday, September 12, 2007

Bolt or Bust

Somewhere in the technical nature of tops the marginal advantage turns to the sellers just a stories about absolute demand and waning supply are finally accepted. Whatever the market, this usually is followed by rapid declines and emptying P&Ls of the ever believing bulls. Commodities across the board have been in the bolt phase and may all be meeting at the top of the same balloon. Crude and wheat each carry the same question that claim all markets in rapid ascent, where to get? Global growth has been a huge factor in explaining all that rises. But there are no tsunami alarms to warn of the impending wave of selling should the global growth story suddenly be interpreted as over. These volatile markets make every good trader, short term or long ask, where to get out? For commodities the answer maybe here.