Commodities have fallen on forced liquidation

MrDODGE · Mar 23, 2008

Not the dollar gaining value. Just thought I would state the facts for the few people on this board that seem to be thinking otherwise. If you look at the ratio the dollar has gained over the past week to the percentage commodities have fallen it isn't even rational to believe the dollar is the key factor.

This can also be proven by the high price of treasuries over the past week.

MrDODGE · Mar 23, 2008

HedgefundTrader2, stop bumping all of your permabull threads.

BlueStreek · Mar 23, 2008

not forced liquidation, just speculative froth, that a couple of big players looked at the fundamentals of the economy (especially the financing aspect) and took profits at these lofty levels, catching a bunch of smal players with their pants down at nose bleed levels. It should make another run at the highs after building a base of support for each of the group, its probably oversold short term, I mean almost 3 dollars came out of silver in a week from highs to lows.

ashatet · Mar 23, 2008

Quote from BlueStreek:

not forced liquidation, just speculative froth, that a couple of big players looked at the fundamentals of the economy (especially the financing aspect) and took profits at these lofty levels, catching a bunch of smal players with their pants down at nose bleed levels. It should make another run at the highs after building a base of support for each of the group, its probably oversold short term, I mean almost 3 dollars came out of silver in a week from highs to lows.
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agreed, but let us not use Silver an an example, this thing is the single most speculative play around. I am getting me some of those commodities on Monday...

AK100 · Mar 23, 2008

Just wondering about these elusive 'big players' who suddenly looked at the economy and then 'took profits'.

a) Had they not been looking at the economy beforehand?

b) What has changed so dramatically in the economy over the last month in relation to the global commodity bull market?

PS. Ever noticed how the 'big players' always seem to 'take profits' and never losses?

Jayford · Mar 23, 2008

Quote from BlueStreek:

not forced liquidation, just speculative froth, that a couple of big players looked at the fundamentals of the economy (especially the financing aspect) and took profits at these lofty levels, catching a bunch of smal players with their pants down at nose bleed levels. It should make another run at the highs after building a base of support for each of the group, its probably oversold short term, I mean almost 3 dollars came out of silver in a week from highs to lows.
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not just a couple of big players. Almost all the hedgies bailed at the same time. They always do this with commodities. These markets are not big enough for all the hedge funds out there now. When they all get in at the same time, and dump at the same time, it has a dramatic effect. This is a fact gentlemen. I have a buddy who works at a major hedge fund investing in commodities so I have it straight from a "source", but its obvious anyway.

Fangdog · Mar 23, 2008

Any grain grower with an acre of land is going to plant wall to wall grain crops. He is going to sell his coming season crop at these lofty "I won the lotto" prices. He welcomes the liquidity provided by speculators for providing him the means to do so.