Chip:
You may be right about commodity weakness but here are just a few "caveats":

1. Last week Jim Rogers launched another commodity fund (HAP). Why would he make such a move if the commodity bull was dead?

2. The move up in the USD is clearly overdone. The pure "fantasy" belief that our economy is recovering faster and stronger than anyone else is just wishful thinking more than anything else. Does anyone really believe that by the Govt backstopping over $5 trillion in mortgages that is bullish for the USD? Don't think so. It won't be long until the US Treasury is faced with the prospect of having its debt lowered to "junk" status by the rating agencies. And the brutal, ugly reminder that the unemployment rate has risen 35% this year is not a cause for celebration by dollar bulls. After all it is the "rate" of accelerating unemployment that is more troubling than the overall 6.1% number reported on Friday.

3. We continue to see actual "physical" shortages of both gold and silver. How long can the "paper" price of gold and silver (downtrend) defy the inevitable supply/demand shortfalls?

I don't see nay of the above posing lower gold prices and a higher USD anytime soon. But then again this is an "Alice in Wonderland" stock market where things are never what they appear to be.

Sincerely,
Chris M.
Miami, FL