BALTIMORE (Stockpickr) -- I firmly believe that the bull market in precious metals and most leading commodities is far from over, and far from a bursting bubble.I think that the recent weakness in key precious metals such as SPDR Gold Trust ( GLD - Get Report) and iShares Silver Trust ( SLV - Get Report) is nothing more than corrections in a major bull market and that the run still has many years left to go. You see, most of the uptrends in the precious metals markets are still intact. Although we have seen some heavy selling lately, that selling hasn't taken any of the leading metals below the key trend lines that would signal the run might be over. Basically, the trend is still up in the metals market, despite what the bears might tell you. Some of the selling in the precious metals market is also due to the hot money in hedge funds coming out of the trade. Recently, The Wall Street Journal reported that hedge fund SHK Asset Management liquidated its gold futures positions, estimated to be worth $850 million, or more than 10% of the U.S. futures market. The manager of the fund, Daniel Shak, said that the gold trade had been profitable for him for years, but he decided to sell due to rising margin requirements set by the exchanges. Related: 5 Stocks That Could Rebound in 2011 The removal of the hot money will be only temporary, in my opinion, evidenced by how quickly the metals market is snapping back off of the dangerous situation bubbling to the surface in Egypt. Let's be honest here: The world is far from fixing the geopolitical problems that we see developing in places such as Egypt. Those issues aren't going to go away anytime soon. I'm also sticking in the bull camp for commodities and precious metals due to the Federal Reserve's never-ending money-printing. I suspect that some latecomers to the party have started to pull money out of the metals trade and reallocate their cash back into equities to take advantage of the Fed's quantitative easing policies. This will end up being the wrong move because the debasement of the dollar will eventually be far more bullish for commodities and metals than for equities.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.