Commodity momentum: Negative momentum spreads
Silver has now joined gold in showing negative momentum. This despite a belief that the FOMC meeting on Wednesday will deliver a QE4 as the expiring Operation Twist could be replaced by an outright bond purchase programme. The energy sector is also showing some weakness, as the supplies are abundant and due to speculation that the current US winter could become the warmest on record.
Soybeans maintain positive momentum despite seeing a small correction following a strong rally during the last month. Corn is slowing and could turn negative ahead of the WASDE report from the USDA tomorrow.