The week was very favourable towards risk assets, especially commodities. Crude Oil, Wheat, Corn, Palladium and Cattle all rose more than 5% on the week. Equities in the US also had a great run. On the other hand, safe havens like Treasuries, US Dollar and Japanese Yen did quite average, with the 30 Year Long Bond declining by over 2% for the week. Out of the currency majors, Canadian Dollar did the best with almost a 2% gain for the week.
Talk Of The Week
Surely Christmas was the talk of the week, and the New Years celebrations will be the talk of this week. But for those still focused on the financial markets, the talk of the week was probably not the huge cut in net long positions for all main Grains, Softs and Livestock commodities - and that is precisely why one should pay attention. Pretty much all the speculators have left the building... just like Elvis.
The same is also true for Silver, where speculators have cut their net long positions to the lowest level since 2002. With Silver down over 43% from the May peak, this surely represents a great buying opportunity and in years from now we will be raving at how low the price was as it traded in the high $20 level!