I’m sure glad that we were all prepared for this thanks to the shinning lights from the gold community who have told us to take some profit to buy the coming dips. Oh wait do they said that no quite the opposite which is why we always have to dig up from a deeper hole... This will be a very rough summer – for a change..
Commodity Complex Pummeled In Preparation For QE 3
Not at all surprising, the entire commodity complex just swooned, supposedly on the latest DOE inventories data, which saw a surge to 2878K versus expectations of -1600K, up from 616K previously (same surge in gasoline inventories, which surged to 2553K on expectations of 900K). We say not surprising, because crude, and thus all the other uber-correlated commodities, needs to drop at least $10-15 from here before the Fed can then proceed to triple its price once the money from QE 3 start sloshing around. We expect significant more downside weakness in Crude as the realization that QE 3 is inevitable finally dawns on Wall Street. Remember the Catch 22: everything (commodities, stocks, etc) has to go far lower, before everything surges yet again post the next monetary easing episode.
