Goldman Sachs Says This Rally in Commodities is Just a Mirage

Critical information ahead of the U.S. market’s open

by Victor Reklaitis
Market Watch

Pundits are marveling at the S&P’s five-day march higher and Brent crude back above $40 a barrel. What’s getting the credit? Short covering.

“In some ways, recently it seems that the worse your fundamentals are, the better your price performance has been. That is a classic, if not the classic, symptom of short covering, which is naturally the reason for skepticism in some quarters,” writes financial blogger Macro Man.

“It’s probably fair to say that if this is just a short-covering rally, it’s probably getting long in the tooth,” he adds.

Many bulls aren’t interested in debating the root cause. They’re just happy with their profits:

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