Wednesday, December 09, 2009

Midday Briefing for December 9th: Falling Commodities

Led by drops in oil and gold, commodities (DBC, above) are breaking down to multi-week lows, reflecting recent relative strength in the U.S. dollar. Those themes represent an unwinding of the risk trade that has supported stock prices during the rally, and they are weighing on stocks now that we're trading near intermediate-term support a bit below 1085 in the ES contract.