The trading in the GLOBEX sessions and this morning have been volatile in the red zone for commodities. GOLD is down over 80 points and was as low as -95 to 1385. A follow through from last week’s selling. Copper,Silver down big also. Energy like CRUDE and Nat. Gas getting sold also.
The Grains are also taking larger hits across the board in CORN , SOY and WHEAT. The selling in commodities will eventually have a direct impact in stocks related to the Industrials and Basic material (XLE,XLB and XLI).
I fully expected this to happen for GOLD but not necessarily across the entire commodity front. In the meantime we will watch how the energy and basic material stocks act by mid to week’s end.