Good morning,

Last night the masters of the universe decided that commodities were the next to go….as people fell over themselves in the latest 30 year bond auction in the US…rates fell to 2.925% for 30 years..six months ago it was 4.2%Pretty big move especially given the US is quite a mess as well..Gold, Silver and Oil got smacked as the US dollar rose and risk appetite flew out of the window..our SPI was down 30 but suspect we may see a bit more on the downside given the fall in commodities..

The thin trading conditions around the World are helping the momentum traders and computers push things around significantly..today we have the futures expiry so there will be huge volume between 10 and 10.30 then suspect it will go quiet again..Gold stocks will be hit hard and at some stage they will be good buying..same applies to energy stocks after the oil price fall last night.

There does seem nowhere to hide at the moment, Gold is supposed to be a safe haven but looks like that has been hijacked in the last few days although I suspect that the panic will ease and we will see it pick back up…unfortunately though I think the Euro Grinch has stolen Xmas..can’t see any signs of Santa at all!!

And just to make matters worse the US Government, who everyone is so keen to give money to, is once again on the verge of a shutdown as politicians bicker and fight…as Germany looks to ready itself to bail out Commerzbank…

As Don McClean sang, “Bad news on my doorstep, I couldn’t take one more step..”

4000 looks to be the level…

No reason to be a hero though just yet..it doesn’t seem to pay!