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More Commentary on Commodities

The comment below is from Doug Kass’ daily column called The Edge:

There is a big rumor in oil trading pits that the CFTC changed the classification of a very large player from hedger to speculator.

The particular participant is rumored to have held nearly 25% of the open interest.

If accurate, they face higher margins and would be forced to reduce their position size (limits changed).

This could account for oil’s schemissing (price getting crushed) in the last several days.

As I come across pertinent commentary I plan to pass it along. The current situation is, in my opinion, temporary. We are targeting purchases in the commodity area once the markets smooth out as significant gains will be realized based upon earnings.

Mark