MIDDAY NOTES ON COMMODITIES

Those that follow us religiously, (all 8 of you) know we have been negative on commodities of all stripes for a good while…starting with the oils at the end of January. We remain with that stance as there continues to be no serious accumulation and any decent chart patterns in that area. This includes steel, copper, aluminum, energy, fertilizers and anything you can drop on your foot and it hurts. Many are asking if this is a harbinger of slower growth just as many are saying growth is getting better. Well, we did have a measly 0.7% gdp here. Our bottom line is to follow the bouncing ball and so far, it continues to bounce the wrong way in these areas.

We also want to add that biotech may have hit the wall right at the important $300 level for the IBB and now looks like it wants to roll over. We also remain less than thrilled with the Transports as a whole though a few airline names are shaping up.

Stay tuned!