Commodities Fall Hard As the Dollar May Be Strengthening

UPDATE: Another rodeo day in the markets. Almost everything falls.

A smart money man told me recently: The correction we're in first takes down the small, hot stocks, the weak, and the trendy. But as it grinds on, it takes down the Big Stocks/Companies which have been in favor and made tons of money in this last rally. When the Great Washout occurs, the correction is near an end for now.

In the past few days, oil and natural gas prices have fallen hard, along with coal, copper, steel, fertilizers and all things commodities. Gold swooned a while back and is somewhat holding its own at the moment, though the gold party looks like it's over.

Still, if you own any commodity stocks----I've mercifully been stopped out of my few to cut losses and retain a few gains---it might be a good time to sell! sell! sell! as Jim Krammer would say.

Meanwhile, the dollar may be strengthening, and not a minute too soon. The weak dollar has contributed to high gas and commodity prices and if it comes back up, we can count on food, gas and other commodities coming down. In other words, our money will buy more. The weak dollar over the past decade has essentially acted like a huge tax on all of us.

Meanwhile, John Tamny knocks the ball outta the park with a piece today on why Washington needs to let GM, as in the heavily subsidized General Motors, fail.