Precious Metals

The Dow was down another 150 points last night as some slightly positive economic data were overshadowed by concern over the liquidity positions of major brokerages.

The Dow became the last of the major three US stock indices to break its January low last night as January jobs data showed a large drop when a small rise was expected.

The S&P 500 closed below its January low last night and the Dow came closer, falling 215 points.

Just when you thought perhaps the parabolic rise in commodity prices might have stalled, last night oil posted the biggest ever one-day gain in its history. The Dow was choppy once more.

While some arguments suggest it isn’t demand that is driving commodity prices but a weak US dollar SVB shows there has been no re-pricing of commodity costs away from the greenback.

The Dow bounced back from the depths of more financial sector woes last night as commodity prices went the other way – finally reaching a blow-off top that saw a profit-taking scramble.

The flight to commodities continues a-pace as the US dollar weakened further last night on more poor economic data. The Dow recovered earlier losses.

Municipal bonds became the latest domino to fall in the credit crisis on Friday, and a raft of bad economic and corporate news conspired to send the Dow down 300 points.

More downbeat comments from the Fed, a weak GDP, soaring oil and gold as the greenback slides, and a down day for the Dow.

On February 27, 2007, Wall Street collapsed in response to the Shanghai Surprise – a response that alerted the world to something called “subprime”.