Tuesday Morning

Insomnia has my balls again, so here are some thoughts for Tuesday. I like the action in the following ETF's: DBA, DBC, EWM, FXY, SKF, SLV, and TWM. These seven funds have many of the fundamental and technical characteristics I think will do well in the coming months, and have been looking real good in the past few days. Agriculture recently made new highs on record wheat prices. Commodities in general have held up rather well in the recent market turmoil, Oil seems to have found support, and the precious metals are either near 52 week highs, or breaking to new ones. Of all the foreign markets I track, Malaysia has the most technical strength, and coincidently, PBS did a special on it this evening. The Yen continues to rise as Japanese investors realize how little they know about their debt exposure, and the financials continue to suffer from massive writedowns. Credit Suisse reported a 72% drop in earnings... Silver has been outperforming gold lately, and a friend of mine in the business suggested that this may be due to a cyclical lack of supply from too few mines. Finally, though the small caps have had a violent rally in the past few weeks, if the markets continue to have trouble, I suspect you will see them resume their overall underperformance. FXI continues to look bounceable and bottomish, and USO might be making a break for new highs. I'm keeping a keen eye on XHB and XLF because if there is further weakeness in homebuilders and finance, it means sentiment has really sourered, and we should expect new lows.