The invisible hand anticipated the hot and dry weather better than local weather man (chart 1).

Chart 1: Corn (CORN) And Corn Diffusion Index (DI)


Now it's accumulating oil while most of the investment world is looking for lower prices (chart 2).

Chart 2: Crude Oil (WTI) and Crude Oil Diffusion Index (DI)


As for gold, even some of the long-term bulls have turned bearish. The invisible hand laughs and goes about its business of reducing its shorts ahead of the coming price adjustment (chart 3). DI readings of 70, 70, 86, and 74 illustrate persistent accumulation of weakness (chart 4).

Chart 3: Gold London P.M Fixed and the Commercial Traders COT Futures and Options Net Long As A % of Open Interest


Chart 4: Gold London P.M Fixed and Gold Diffusion Index (DI)

Eric:


I notice today that corn and soybeans are rocketing higher while oil could be forming a bullish reverse H&S pattern and has certainly moved off of its lows.

Meanwhile…silver is taken out and shot again.

How long can higher food prices not be reflected in the value of both paper and real currencies when people cannot afford to eat?

Interesting. For everyone importing their food this fall and winter, I wonder both what they will be using to pay for it, and how much it will cost?

It’s a great system…cheapen the paper currencies, put into place policies that create surplus demand for food stuffs (ethanol from grains and sugar), and attack the gold and silver price.

We can all eat cake! That did not end well, as I recall. (Although to be fair, Marie was not referring to “cake” as we know it today)

What do you suppose that instead of an exceptionally mild winter like we had this past year, we have exactly the opposite kind this year and it’s bitterly cold and long?

That would not surprise me at all, given how things seem to work.

Kevin

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