Yesterday was a complete disaster with gold down around $100 dollars and silver prices down almost $3 dollars in very heavy volume which tells me that all the weak longs or the people who just entered the market in the last couple of days were forced out of the market with heavy losses.

The silver market rocketed higher this afternoon rallying more than $1.50 at 37.20 an ounce making another round of contract highs while gold rallied another  $16 dollars an ounce to close near 1,791 an ounce with resistance at 1,808 which could happen in tomorrow’s trading session. Copper futures also joined the party today rallying 300 points to close around 392.00 a pound with resistance at 400 which also could be penetrated later this week.

   Investing in the S&P 500 and commodities can be a wise idea to grow your portfolio over the course of time, however there can be tumultuous times that can have your portfolio decline dramatically as in the case of the financial collapse of 2008. Those times are over and the S&P is right near its old highs and the Nasdaq composite is at 11 year highs and the commodity markets have rallied tremendously in the last couple of years.

The U.S dollar is higher against most of the foreign currencies today causing commodity prices to head lower in early trading this morning. Gold futures are lower by 3 dollars trading at 1,774 an ounce while profit taking is to blame for crude oil trading lower by 80 cents at 109.10 a barrel. The grain market was lower as well with corn down another 6 cents while wheat was lower by 3 cents.