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The Weekend Commodities Review
Energies
Crude oil has become so closely tied to the global economic outlook that the demand side pressure is seemingly outweighing the supply side premium. That means a strong dollar and weak global demand outlook should push oil prices below $90. Gasoline and heating oil should follow suit while natural gas remains a long term buy with straight calls to capture upside volatility.
Financials
The stock market has developed a downtrending channel after setting a relative high set back on May 2nd. This pattern suggests a move to 1307 on the S&P, although I believe the momentum to the downside should increase rapidly and the channel is likely to fail by a more aggressive bear move over the next couple of weeks. The outlook on the global economy is finally starting to catch up with what I have been discussing for months
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