Thursday Commodities and 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 day started out strong, then had the feel of yet another failed rally until the market turned around and finished strong. T-Bill rates touched the lows for December, new lows were very high, and prices lower after the gap open... then T-Bill rates firmed along with stock prices. Today may have been the kick off for the end of the year rally, but for that to happen prices need to exceed overhead resistance, T-Bill rates need to behave, but most of all new lows need to settle to below 50 or so with new highs well above 50.
The British Pound is the first currency to join the US Dollar under the 40-week. The Aussie Dollar looks like it is next.
Commodity prices seem to be holding up, but industrial metals are weakening, which is an indication of the worldwide economic slowdown. But so far, commodities retain enough price strength that they are not a drag on stock prices.
58% commodity bulls isn't bad considering the amount of bad news about the economy hitting us everyday. Firm commodity prices remain an important indication that the economy is still slowly growing and that works in favor of stocks.
Market Vane is a sentiment survey of commodity futures advisors, and is used by futures traders. The survey result can be obtained for free via Investmenttools. The publisher states that it should be 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.
