Thursday Commodities & Currencies
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
The US Dollar continues to be weak while all other currencies continue to be strong in relation to it... and particularly the currencies of the commodity producing countries such as Canada, Australia and New Zealand. As a result of the weak US Dollar, and the strong global economy, commodity prices are booming led by oil, agriculture, and now gold.
The commodity producing stocks are the place to be. They have been for a while, and probably will be for a while longer, at least until the global economy slows. The risks to the global economy are that high oil prices strain economic activity, or the China stock market corrects significantly, or that mortgage and credit problems spread throughout, or war in the middle east with Syria or Iran. Of course, I'm not telling you anything you don't already know. For now, higher commodity prices mean strong economies and that is favorable for stocks.
Higher oil prices often means higher natural gas prices. I like natural gas long-term because of high oil prices... because natural gas is domestically produced... and because natural gas is cleaner burning than oil.
I wish I had something to show you that you haven't seen or heard from a million other sources already. Gold is just breaking out of a considerable consolidation. The shares are outperforming the metal and the shares are outperforming the broader stock market.
