The war rages on. If the efforts by the Feds massive amount of cash sloshing around going to reinflate or not? Bond traders are specualting it will, commodity prices are acting like they agree.
What most are not considering is the fact that the very thing that caused the bubble to pop (Real Estate) is still imploding and spreading to the commercial sector.
For the agressive traders buying into the comodity run may just be a good trade. However watch for the run to fade in a few months. What most are banking on is the inflation forcing tangibles. While I agree this could happen, I also see the implosion of trillions of dollars in Real Estate that the banks still will not disclose. If the reality of this does come home to roost and production (see euro production article)drops, then there will be too much suply once again haging around and prices will once again drop.
To play this, get on board a few commodity ETF's for the summer and be careful. This could turn fast and furious.
Or you can trade super conservatively like I do and wait for the rally to halt and then sell diagonals on the way down. Either way will make for a wild summer.
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