Below are my notes taken while listening to the weekly metals wrap on Kingworld News as I drive back to Chicago FWTW

1/15/10 Art Cashin – head of trading at UBS Capital

· 9 weeks in a row of S&P being up. Stayed above its 10 day moving average for 30 straight trading sessions which has never happened in the last 100 years which says it’s a bit overextended.

· Dollar index at critical support right now.

· Higher interest rates could put solvency of Fed at risk.

· USDA crop report this last week has sent food prices soaring as carry overs are at lowest levels in memory. But at least the rice has not gone sky high which if it did, could really have negative ramifications.

Weekly Metals Wrap at Kingworld News (Bill Haines head of CNI Gold & Silver & Dan Norcini (Sinclair’s buddy)

· Silver volatility will be the norm for 2011. Some tightness in the physical market…silver rounds have some delays in getting your hands on them. Silver eagles and maples readily available. (Haines)

· People are now starting to buy after this last downtrend in price even if they think it will go a bit lower. They are mostly interested in getting out of dollars. (Haines)

· Crude oil market is giving signals that it wants to move significantly higher. IF it runs toward $100 a dollar it is going to put a floor of support under all of commodity sector including PMs. This will make it difficult for gold and silver to move significantly lower – should put a floor on. Crude is still trading far below its all time high of $150. If oil continues to go higher the cost of materials is just going to go higher…..will pose upward pressure on entire commodity sector including PM. (Hedge funds buy baskets of commodities and part of that basket is the PMS)

· Food prices are rising which will be seen at stores by April or May. Rise is the one food that has not broken out. At this price, rice is a buy.

· If we see oil go to $100 we should see PM really take off. Asia has to import a lot of quantity of oil which will feed that inflation mentality in China with probably increases in their interest rates.

· Weekly charts of PMs still show strong uptrend but daily charts of PM week. $1350/$1360 level has caused a lot of buying out of Asia. IF they can’t hold it there then it could go down to $1340 which if it goes down to $1320 there will be substantial buying. Bulls need to get it above $1380. $28.50 is a good support level for silver. Given what we hear about tightness in physical market there should be a lot of buying come in if it breaks towards $28. Bulls need to get it above $30.

· Natural gas downers have been supply over hang due to shale drilling. Traders are still bearish. Lots of shorts in the nat gas markets. Not ready to say he is bullish yet on nat gas (Norcini).