Trader Talk

Commodities Drop -- and Airlines Take Off

I have been talking about the unwinding of the “long commodities/short dollar” trade.

It continued today, just look at what happened to these major commodities:

-Copper down 4.5%

-Sugar down 3.1%

-Platinum down 3.0%

-Natural gas down 2.7%

Energy and materials sold off; tech and financials rose. Pray for an in-line or slightly stronger nonfarm payrolls report (seems like a stretch, I know).

Meantime, look what lower oil (down 8 percent this week) and consolidation talk has done to the airlines this week: Northwest Airlines up 34 percent, AMR up 33 percent, US Air up 30 percent, Delta Air Lines up 25 percent.

Questions?  Comments?