Falling on one’s sword seems appropriate for the action overnight. There is no news of major import to move things so the path of least resistance is lower right now. Looking at the US$ one would find little solace. It continues to work higher and with the current world economic situation it seems we are now looking at the US leading everyone out of the darkness. Therefore, we could easily be on an upward path that won’t end soon for the US$ and that means a lower one for commodities, or a much slower upward move because of the headwind the US$ is creating. There is little to say about weather as it is benign, demand is status quo and outside factors at the moment are not of consequence. So look for a quiet holiday trade the next few days. Volume was a bit higher yesterday and the whole complex shed some OI. Spreads and basis are not really moving now either. Thus calling today another down day and by week’s end we may be threatening the technical bullish scenario.
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