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 |
Below is the weekly look at how well commodity prices and currencies are holding up, and I have highlighted in green the commodities and currencies hitting new highs or in very strong trends. These commodity prices are generally very strong, and are not anticipating an economic slowdown, and that is obviously good news for stocks (and jobs). Also, the companies that produce these commodities continue to be excellent investment opportunities.
Regarding Market Vane, this is a sentiment survey of commodity futures advisors, and is used by futures traders. It has been bullish for a long time, although is below the 70-75 level where it spent a lot of time prior to this summer. I had been using it as a contrarian indicator. However, the publisher states that it is better used as an indication of the current short-term trend, with the idea that investments in commodity futures should be in line with the trend. So this survey has to be viewed separately from the others. I think it remains favorable towards commodities, but not as red-hot as last winter and spring.
The CRB is heavily energy-weighted. No surprise it has broken out above resistance headed towards the highs of the spring of 2006. As long as this index remains in an uptrend, but doesn't move too high too fast, it is favorable for the economy and for the stock market.
