Crude futures are logging fundamentally significant gains, ignoring the higher than expected inventory report. Crude futures have cleared the psychological $50/bbl mark as the Dollar depreciates across the board. Since OPEC values Crude in Dollars, a weakening Dollar makes Crude much more attractive to buyers.

Additionally, investors are hoping the quantitative easing initiated by the Fed will help boost manufacturing and production and consequentially consumption of Crude.

Gold is surging after the Fed's announcement of proceeding with a $300 Billion quantitative easing plan. Quantitative easing is weakening the Dollar extraordinarily, providing incredible upward momentum for gold.

Once drifting back into its downtrend, gold has done a 360 overnight. The uptrend is back in full force and the precious metal is currently fighting to get back above the psychological $950/oz level. If gold should accomplish this feat, we expect to see the continuation of violent movements to the upside for the near-term.

A retest of $1000/oz is no longer out of the question, and has suddenly become a reality. Such incredible directional movements have ripple effects so we expect the high volatility to continue for some time.

The 30 Year T-Bond futures posted incredible gains yesterday after the Federal Reserve decided to proceed with quantitative easing by injecting $300 Billion into U.S. Treasuries. Even though Bernanke stated the Fed will focus its accrual of Treasuries on the 5 and 10 Year Notes, the 30 Year was more than happy to participate in the incredible rally taking place.  In succession, the 30 Year futures have been jolted out of their downtrend, and are looking to head back north in a hurry.

The U.S. has taken care of the rising concern over excess supply to fund the government’s massive stimulus package.  Furthermore, the Feds are appeasing China by reassuring the East that their investment in U.S. debt will be a secure one.

Rate follows GBP in two-way action but holds better on the dip, support now above the 1.2950 area. Upside stops likely cleared in size and if the rate can close above 1.3380 more upside is due.