Premarket Take 8/28/09

The dollar’s impending implosion has drawn nearer this morning as Doug Kass sits and weeps in the corner of his office. Then again, what does he care, no one gives a crap about bad calls, whatever. Selling in the dollar picked up this morning and has led to a full fledged commodity romp. At the moment, the $ES_F contract is up 5.50 or better than half a percent. I’m expecting a push to the upside today after a nice bull flag set up yesterday afternoon on the $SPY.

Copper broke highs at 2.925 and is now up 3.5% this morning. Silver is getting some legs and even gold is participating to some degree, up 1%. Crude oil retook 73 overnight, I wouldn’t be surprised to see a test of 75 today. And for all of you $UNG cheerleaders, natural gas is, wait, one moment, oh it’s down again who are we kidding. The October $NG_F contract is trading just above $3. I’ve said it before and I’ll say it again, there is no need to be there, just step away, stop gambling.

The major dollar killers this morning are the $AUD and $CAD crosses. We don’t yet have fresh yearly highs in either, but today’s session could well change that.

I’m seeing a nice spike in gold ($GC_F) as I write this, maybe this is the day we get a breakout there. Remember to be disciplined and always manage risk.

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