Edward Meir Quotations

Yesterday's sell-off was a shot across the bow, but we don't think the bulls will be heading for the hills anytime soon.

Sometimes one comes across an especially odd trading day when nothing much makes sense. Yesterday's session was a case in point, with the action in the natural gas complex being particularly puzzling.

While fundamentals are tight in several of the metals, they cannot justify current valuations. Markets are, instead, held hostage by the growing amount of investment and speculative money out there that is increasingly finding its way into commodities.

It remains to be seen whether this latest really will be upstaged by this week's EIA inventory reports. We think not; the markets are grappling with three simultaneous geopolitical hotspots right now, increasing the odds that at least one -- if not all three -- of these situations will override the potentially bearish consequence of an inventory increase.

The copper rally has surprised us all, even the die-hard bulls among us.

The Iranian situation remains on top of the heap in terms of market concerns.

There are still no signs of a downturn in global economic activity, suggesting that the fundamental backdrop for most commodities, including crude, remains favorable. We'll see if this week's U.S. numbers change any of that.

The strike in Nigeria, if it does come to pass, will have a limited price impact and could very well follow June's pattern, where a sharp spike after the strike announcement was followed almost immediately by sizeable selling,

It's hard to pinpoint what the reasons behind yesterday's price surge were.

Although details have yet to emerge (prompting the White House to withhold comment) energy bulls are undoubtedly fretting.