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.
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