Twist Extension Doesn’t Impress Commodities


Author Larry Berman

Posted: 25 June 2012 re-posted from etfcm

The fed did extend twist and commodity prices were not impressed. The TSX has some material headwinds when it comes to the 30% weight in the energy sector given the clear slowing global economic picture. Major support for WTI in the $75 could be tested in the next few months, but it should hold as the global economy is not falling off a cliff.

Gold will be hit and miss for the next few months with QE3 being dangled by the Fed. Look for the sector to do well on disappointing economic numbers and weaken if numbers are a bit stronger. The banks will bounce around with the US financials and the fate of the global banking risks, but do face some earnings headwinds too.

 

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