Best Financial Markets Analysis Article With Greece in the rearview mirror, investors turned their attention to the risk on trades. The CRB index painted a clear breakout from its consolidation over the past few weeks. This breakout has been confirmed in silver, gold, oil and copper.

This rally should remain fueled as central banks around the world have eased interest rates, lowered reserve requirements and purchased bonds in an attempt to create liquidity and stability to fragile financial systems. This action will ultimately be seen as inflationary which is being reflected by today’s movement in the commodity sector.

The 10 year note has broken below its recent uptrend line. This should keep the risk trades well bid as money seeks higher yields in other markets. Silver has been particularly sensitive to the 10 year note and should see higher prices ahead.

Silver, once again, leads the rally in percentage points gained as it receives a bid in today’s session.

All in all, with oil forging higher, the metals should follow along. Add this to the fact that notes and bonds are starting to see an exodus of funds and we should have a nice rally into summer.

Dr. C.A. Bennis
-an independent thinker and trader

www.wheatcorncattlepigs.wordpress.com

wheatcorncattlepigs@gmail.com

© 2012 Copyright Dr. Chad Bennis - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.