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Is The Commodities Bubble About To Pop? Again?

Thu, 29 Mar 2012 10:48:34 GMT

Even though the Nasdaq and S&P are making new highs off of the 2011 mini crash, we have talked about how the Nasdaq and Dow Transports have not. If we look at the behemoth copper, gold and minerals miner Freeport McMoran, we see that it isn't anywhere near making a new high. In fact, it is moving the opposite direction.  Exxon, the U.S.'s largest oil producer, hasn't made a new high in about a year and a half even though oil keeps running higher. Newmont Mining, North America's largest gold producer the last time I looked, hasn't made a new high in seven calendar years.  Yet, commodities are still levitating at very high levels thanks to Wall Street manipulation.  For now. If fundamental demand for gold, as an example, remains robust, why aren't Freeport and Newmont moving higher?   Well, fundamental demand for gold isn't robust as we wrote on here some time ago.  Additionally, there simply isn't enough liquidity to drive all of these assets into...

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