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| Oil Below $98/bbl |
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| Silver Below $34/oz |
Oil fell below levels we haven't seen from the middle of February, and silver struggles to gain traction as the metal fell below $34 US/oz. Commodities weakened amid strength in the US dollar, again a sign that commodity prices are showing signs of normalizing.
Looking at a 6mo. chart of the TSX index, we can see that near term the highs have been set and the stocks are currently in a downward trend. Largely the result of commodity prices falling; Euro debt issues, and US debt issues, weak US housing data and, a cooling Canadian housing market show that while the recovery is still somewhat in tact, economic headwinds still remain. Valuations in my opinion have been quite high, merited however by record corporate profits. I am looking to get long oil in the low 90s, silver in the high 20s and am hoping to see the TSX shed another 1000 pts.
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| 6Mo. Chart of the TSX index, clearly rounding out |
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