First Quarter Trading Really Begins

Volatility should kick up this week as the markets begin to establish first quarter battle scars. Despite the yearly romps in October, the first three months of the year are never without plenty of action. Monday saw commodity prices begin the week with sharp losses as notions of deflation were being pondered by specs. Whatever the direction, commodities will follow the stock market this quarter since equities will be the barometer for the world's efforts in defeating the pervasive dismal sentiment infecting alternative mattress strategies. Monetizing long positions requires more lifting than the Fed and Treasury have done, but the new administration's call to arms may cause the bears to think twice.