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Largest One Day Rally In 49 Years


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Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Below is an article found in my book Haunted By Markets in a chapter entitled, Largest One Day Rally in 49 Years I penned on September 23, 2005. Here are the opening paragraphs;

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"On the first day of the week, the widely followed commodity index the CRB, rose 3.8 percent, the biggest percentage gain since the index debuted in September 1956. The index, comprised of 19 different commodities was led upward by the energy, metal and livestock markets. Even those bullish commodities were amazed the CRB could experience a one-day rally that was the largest in nearly 49 years. The rise with energy prices was due to fears another hurricane moving into the Gulf of Mexico would threaten supplies of crude oil and natural gas. The metal markets rose sharply with copper hitting a new all-time high while gold prices reached a 17-year high. And the entire livestock complex established new yearly highs as foreign and domestic demand for red meat continues to be astounding."

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And here are a few of the final paragraphs from the chapter above

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"In light of todays inflating commodity markets, be quick to recall the trading maxim; the best cure for low prices is low prices. Regardless of how bearish a market appears, prices will not remain for long at low levels before index and hedge fund buying emerges sparking an upside reversal. For instance, the livestock complex has been transformed from the weakest of commodity markets only three months ago to today, the strongest. It was and is hedge type fund buying that sparked the bull move that is still intact.

When inflation is a force, it is not so easy to determine how high a market can rise before it runs out of steam. On the other hand, pinpointing markets that are relatively cheap, under the cost of production and resting on long term support levels is much easier. Depressed markets in an era of inflation attract index and hedge fund buying like honey attracts bees."


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The first newspaper column I wrote for this year is entitled, Commodities Will Rule and Stocks Drool in 2019. The final paragraph of that column read as follows;

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"The New Year should present aggressive investors and traders with some low risk, high probability opportunities with a host of commodity markets. I also predict that in 2019, commodities will rule while stocks drool. Annus Mirabilis looms ahead!"

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To learn about the history of the futures markets, stocks, bonds, currencies and commodities in the years 1990 to 2015 to go, www.commodityinsite.com and check out Haunted By Markets. My book is unique and the only history of the futures markets of which I am aware. It is truly unique!


Moving forward, I am quite bullish commodities per se and fully expect them to outperform stocks in the New Year. However, at this point in time, I am focusing on two and only two trades for now. If you wish to know about those trades drop me a line at commodityinsite1@gmail.com. Or, call me at 406 682 5010.


There is no substitute for timely and accurate information. Do not be left behind in 2019!


Saturday, January 12, 8:00 a.m Chicago



























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About the author


Jerry Welch has been in the futures industry since the late 1970's and is a true veteran of the markets. He has been quoted often in Wall Street Journal and is author of Commodity Insite, one of the longest commodity futures newspaper columns in history. His weekly column has been published each week since the mid 1980's and is one of the most recognized names in the world of commodities.

Mr. Welch is also known widely as a, "so so" flyfisherman.  

His column is published by the Illinois Agri News in La Salle, Illinois, Cattle Today, in Fayette, Alabama as well as Consensus, in Kansas City, Kansas.

He can be contacted at 406.682.5010 for a view of his, "twice a day" market column that includes price forecasts and trading suggestions.

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