Precipitous Falls in Commodity Prices as Shaky 'PIIG's Roil Markets

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(2-7-10) Last week we saw a continuation of the now ensconced 30-day trading pattern followed by 4-5 day declines, followed by 1-day "dead cat bounces" in both equity and commodity prices.

These bounces have represented and will continue to represent fresh shorting opportunities in equity and commodity prices as well as fresh buying opportunities in Treasuries and Dollars.

We continue to trade the Treasuries from the long side on dips, as we have done this continuously for the past four weeks.

Indeed we were buyers of the Treasury Bonds Friday morning on the pullback, buying the March Long Bonds at 118.14 and selling them at 119.14 in late session trade, taking $1000 per contract in profit out of our positions.

We also bought the Dollars Thursday night, as the Dollars came up above 80.25. We were sellers of the Dollar at 35 ticks higher in Friday's trade.