Commodities are once again poised for higher movement as the US Dollar weakens. After much hoopla over the stimulus bill and housing bill, it looks as though commodities traders are beginning to realize that the US Dollar has little choice but to weaken.

With interest rates having little room left to move lower and due to the current 0.25 Fed Funds rate. The Fed is taking a stance of further loosening via the printing of money. The US Dollar has little choice except to move lower. As such, look for an opportunity for commodity traders to take advantage of some moves to the upside. TradeThink is a tool traders can use to evaluate commodity price moves across  various markets. 

Today Gold is up nearly $70 and Crude Oil is over $50 per barrel once again. It looks as though the Feds weakening US Dollar stance may have the opportunity to help jump start inflation.

Commodities markets had been in a sideways motion since about December 2008 and trend traders have paid the price in the form of draw down. There may be some trading opportunities on the horizon if there is commodity price inflation. One tool to help evaluate movements in the commodities markets is the TradeThink commodities trading strategy. TradeThink trading strategies are a proprietary algorithm to show when and where commodities markets (gold, crude oil, corn, bonds etc) may be ready to trend.

Good Trading,

Chris Morse

Developer
www.TradeThink.com
713.429.1668

Disclosure
Commodity Trading has large risks, but also large potential rewards. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to buy/sell commodity interests.