Tag Archives: bill gross effect on interest rates

Weekly Commodity Strategy Review

We looked at the recent commercial buying in the US Dollar Index on Monday, noting that, “Even though commercial traders remain heavily net short, their recent purchases have been strong enough to shift their momentum back to the positive side.” We also looked at technical support that has been tested and held, throughout this week.

You can find the full piece featured at TraderPlanet.

Timing the Dollar Index

Tuesday was probably our best call. Equities.com featured our crude oil analysis in, “Crude Oil Spike is a Selling Opportunity.” We stated that, “our simple take on the way these usually work is that we’ll get one more spike of some type above the recent congestion that has built up. This morning’s trade near $61 is the spike we’ve been waiting on. ”

The market peaked Wednesday around $62.50 and has quickly fallen back near $58 per barrel.

We went macro with our own piece again this week as a follow up to, “The Interest Rate Conundrum” of two weeks ago. Originally, we focused on the world’s central bankers and the recent International Monetary Fund meeting in Washington. Their primary purpose was to discuss what it would take to US and global interest rates to rise and when. Apparently, Bill Gross had the answer and the markets listened in a BIG way. Even if interest rates aren’t your topic, the swings on the charts I posted are truly dramatic.

Interest Rate Conundrum Resolution

Interest Rate Conundrum Resolution

Two weeks ago we detailed the issues facing the Fed’s seeming inability to get the notion of higher rates going forward through the thick skulls of the interest rate market’s participants. Specifically, we referred to Janet Yellen’s approach at the International Monetary Fund’s meeting in Washington two weeks ago. It appears that her primary purpose was to make clear to world leaders what data she would use in determining when the US would raise interest rates. The new era of Fed transparency left the attendees in good spirits and high hopes that they were all on the same page. Until….

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