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What's Got Traders Nervous Now

Traders get nervous as crude oil closes at new highs. Oil over $80 for the first time in a year has stock traders talking, worried that higher commodity prices would again be a burden to consumers.

Peter Boockvar and other traders have noted the big move in commodities this month:

1) gasoline and crude futures today rising to a one year high

2) corn near 4 month highs

3) wheat at a 2 month high

4) soybeans near 2 month highs

5) sugar near a 28 year high

6) cocoa at a 30 year high

The Carbon Challenge - A CNBC Special Report - See Complete Coverage
The Carbon Challenge - A CNBC Special Report - See Complete Coverage

The average gallon of gasoline is at a 7 week high at $2.60, just $0.10 away from a one year high.

While high commodity prices might be a big help to commodity stocks, and the weaker dollar is a big help to multinationals, it is a major headwind for other stocks if it continues.

High commodity prices mean those companies that are U.S.-based and more dependent on consumers will see their top line and their margins erode.

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