Commodities (and foreign currencies) are down across the board, as the dollar has bounced sharply up the last 2 days. I think this was overdue – there are always corrections after such sharp moves, and the dollar has been taken to the woodshed hard since Bernanke caved.
If you invest in commodities on fundamentals, nothing has changed. Buy more if you can, but don’t over-leverage. If you’re more technically oriented, you may want to wait for the end of this dollar upswing, whenever that may be, to add more.
I’m holding pat for the moment – don’t feel comfortable adding more leverage, but definitely not looking to sell either. If you’re looking to add, take a hard look at coffee and sugar – both held up strong today while crude, gold, cotton, etc. were getting slaughtered.
Here’s a great column I often read about the currency markets, The Daily Pfennig. Chris Gaffney mentions this is a good buying opportunity for those who were kicking themselves about missing the dollar’s latest move down – I think the same is true for commodities.