The Chickens Are Coming Home To Roost. Part II

Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

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This afternoon I am putting the final touches on my weekly newspaper column, "Commodity Insite." The title of this weeks column, due to sharp decline underway with stocks and bonds (as well as the CRB Index!) is, "The Chickens Are Coming Home To Roost. Part II."


Here is one paragraph out of many from my column above.

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"It is interesting to note that the Dow punched out a low of 23,081 on Wednesday before catching a bid and staging a rally. And the low posted was within 81 points of the Merrill Lynch downside objective made last week. Still, the question moving forward simple. Have stocks bottomed and now poised to recover? They could indeed but my work shows the hemorrhaging with stocks will not end until the Dow touches 22,000 at the least."

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As I type furiously away, Dow futures are 470 lower and trading at 23,570 or so. An interesting day.

But more interesting is the fact that pork cutout values fell $1.60 this afternoon with boxed beef prices slipping a whopping $2.03.

Based on the stock markets alone, I would not be long any market anywhere over the weekend. The Dow is on course for the worst week in 9 years. And history shows that a poor close on a Friday, going into a weekend bodes well for the following week.


Right now, stocks, bonds and the CRB Index are going to end the week poorly. Possibly, very poorly.


The time is 11:40 a.m Chicago

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