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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Discount rate up/ $US UP/ commodities down

Discount rate up/ $US UP/ commodities down

posted on Feb 19, 2010 02:17AM

After the market closed, the Fed raised the short term discount rate to ¾%, signalling that their zero-interest rate policy is ending.

Stock index futures fell sharply, dropping to near the lows of the week within a few minutes. In overnight trading the $US broke major resistance level at $80.5 and $EUO is diving.

More importantly to CLL, commodities are down as you expect they would, with the stronger dollar. Gold futures are down $15 and OIl is down as well.

HANG SENG is down over 2% and futures indexes are down, indicating much lower opening for Friday morning.

Keep your stop loses tight. The best play in town (as some pro are advising) is to short $EUO or go long the EUO (Triple Short Euro ETF). Remember it is your money, so be very cautious and do not extend yourself with margin.

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