Table Pounding Time for Commodities

Resource Opportunities
"The corrective forces in the commodities markets over the last 2 months, has moved the hot money funds (hedge funds, commodities funds and speculators) from a large net long position to recent large net short positions. In addition, the investment press and “talking heads”are rejoicing over the presumed end of the commodity cycle. Sorry, but we do not concur!

The recent down-leg or correction was just that – a correction in an ongoing bull market. When energy stocks rose sharply in April/May we noted in the Maison Monthly that the sector was overbought and a correction was likely............. We believe that the corrective forces have done their job and with the extreme pessimism now seen towards the commodity board, the technical and fundamental factors are now in a wonderful buying position. In fact, we would use the colloquial – Table Pounding Buying Opportunity." (9/3/08)

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