Thursday, May 05, 2011

Quick Look: Commodity Selloff Continues

The market is lower in early trading, after a weaker than expected jobless claims report. Tomorrow is the monthly nonfarm payrolls report, which is always heavily scrutinized.

ECB President Trichet made some comments about monitoring price stability which hit the euro. The Bank of England held rates steady at 0.5% and reiterated its 200 billion pound asset purchase plan.

Those events helped push the dollar higher, which only exacerbated the selling in commodities. Oil prices are down again to $105.40, and gold prices are trading down to $1511. Silver prices are also down sharply again today, nearly 4% so far.

Nice earnings reactions can been seen in the likes of JDSU, WFMI, and CI, to name a few.

Trading comment: Yesterday I said the market should find some support near its recent breakout at SPX 1343. That worked great yesterday, as the market bottomed around 1342. This morning, the SPX is again testing those support levels. We'll see if it works out again, but I think it is time to start putting a little cash to work around these levels.

Also, I'm filling in for Doug Kass today on, and will post a complete roundup of my comments tomorrow.


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