On the horizon, a FOMC is coming, actually next week on Sept. 17 and 18. Will we see tapering? Will we see a hawkish Fed or a dovish Fed? To prepare the U.S. dollar for a hawkish Fed or even tapering, the U.S. dollar needs to drop.
With all of the hot air floating around Washington, D.C., we saw natural gas drop from $3.800 MMBtu in mid-September to test the waters below $3.500 for one day, Sept. 26. Last week November natural gas opened at $3.755 and closed the week at $3.589.
Sugar prices are in a free fall now at prices we have not seen since July 2010. A major reason for last week’s drop was that it was reported the output nearly tripled in April at the main growing area of Brazil.
Last week the Dec. E-mini S&P 500 opened at 1767.00 and closed the week making new highs along the way at 1793.50. No close yet above 1800. Now I agree that PE ratios do look goods, so why does it seem that tapering talk spooks the market, or does it?