Salient to Investors: Hedge funds et al raised net-long positions across 18 U.S. futures and options last week, the highest in four weeks and the first consecutive gain since the end of February. Commodities slumped into a bear market June 21. Jeffrey Sherman at DoubleLine Capital expects volatility in commodities as people
READ MORE... →Salient to Investors: The MSCI World Energy Index is down 9.6 percent in 2012, more than any other group, and is up 45 percent since the market bottom in 2009, less than any other industry with earnings tied to economic growth. U.S. energy stocks are at the cheapest levels relative to the
READ MORE... →Salient to Investors: Investor Jim Pogoda said just extending Operation Twist was seen as not enough to keep positive momentum in gold, which will attract some safe haven investment as the focus turn quickly back to debt troubles in Europe. Nick Moore at Royal Bank of Scotland Group said global financial market risks abound and
READ MORE... →Salient to Investors: Brent’s 14-day relative strength index at 17.4 today – readings of 30 or less suggest prices have tumbled too quickly. The August Brent contract traded at a 33-cent discount to September, the fifth consecutive day that the front-month contract has been cheaper than the second month, which typically
READ MORE... →Predictions: Ken Hasegawa at Newedge Group expects WTI will trade between $75 and $82 until the end of the month; until September, we have volatility from the Atlantic hurricane season. Fourteen of 27 analysts polled by Bloomberg expect oil to decline through June 29. Read the full article at http://www.bloomberg.com/news/print/2012-06-22/treasuries-remain-higher-on-stocks-as-gross-warns-of-risk-assets.html
READ MORE... →Salient to Investors: Standard & Poor’s GSCI Spot Index down 22 percent from 2012 highest close, entering a bear market. James Steel HSBC Securities (USA) said near-term momentum may take prices lower, but it would create a buying opportunity. Read the full article at http://www.bloomberg.com/news/2012-06-20/gold-set-to-rebound-on-expectation-fed-will-stimulate-economy.html
READ MORE... →Salient to Investors: The creator of the $125 billion market in exchange-traded gold is struggling to establish the same for industrial metals. Consumers are concerned the new products will cause shortages of industrial materials, and the U.S. Commodity Futures Trading Commission is trying to limit speculation. Deborah Fuhr at ETFGI said other commodities tend not to be
READ MORE... →Salient to Investors: Oil tumbled below $80 a barrel for the first time in eight months. U.S. stockpiles at the most in almost 22 years. OPEC crude supplies at the highest level since October 2008. Saudi Arabia pumped crude at the fastest pace in at least 23 years. Predictions: Eugen Weinberg at
READ MORE... →Salient to Investors: Hedge funds that specialize in commodities lost again third May in a row. Commodity managers mirrored hedge funds as a whole, which dropped 2.9 percent in May. Read the full article at http://www.bloomberg.com/news/2012-06-20/hedge-funds-hurt-in-may-commodity-rout-as-brevan-drops.html
READ MORE... →Carl Pope says: Abundant, cheap fossil-fuel energy – that created the modern consumer economies of the U.S., Europe, Russia, Australia and Japan – is not viable in the 21st century due to cost. Coal is geologically more abundant than oil, but cheap coal, close to population centers, is not. Powder
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