Well, it's been quite a volatile ride recently with a couple of limit down days in a row for several of the softs and there has been some rampant selling for the sake of creating liquidity in the face of broader market troubles. When one of the oldest and most established investment banks in America goes from $150 a share to being bought for $2 a share less than a year later, something is seriously wrong. On CNBC's Fast Money tonight, it was put very interestingly. Bear Stearns survived the Great Depression, a World War, and several market crashes in between, but it should speak volumes about the gravity of the credit crisis that it was the one force able to bring them down. It is this pressure on credit and lending that has crossed over to influence the highly leveraged commodities market.
I suppose that beneath it all the good news is that as of right now the fundamentals are still intact for a great year of price appreciation, but it may be a rough ride to get there. Speculators will continue to move in and out of the market as their credit/liquidity balance allows them, driving prices up and down wildly along the way, but if you keep an eye on it, they should track higher throughout the journey.
Trade carefully, use stops along the way, and don't be afraid to take profits as well. Happy trading-
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