Securities Research Services

Tuesday, April 03, 2007

Speculation Drives Commodities

Sentiment was mixed yesterday as traders really don't know which way the market will turn next. This makes sense since it is really at a neutral point here.

Meanwhile, we are seeing signs of speculation in the metals and oils as traders make bets about what will happen next in the Middle East.

Most of the time these types of moves that run on speculation end up being a bit of a pump and dump where a large group ends up as the bag holder. However, it's still early in the game and the pump stage can be quite profitable if you know when to head for the doors.

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