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 Tuesday and Wednesday comments were published earlier today.
Commodity prices pulled back a little bit along with the stock market during this week's wild sessions. But when equities snapped back commodities recovered as well. I may deserve the flip flop award, but if this past week can't shake out these commodities then we have no choice but to question whether a big decline in commodity prices will occur. Also, if the uptrend in commodities is this strong, you have to question whether the world economy is really ready to fall off a cliff. More time is needed, but if commodities generally retain these prices, then when the stock market recovers there isn't much doubt that agriculture, energy, materials, precious metals, alt-energy, etc will be the leading groups.... yet again.
This chart was shown last week. Not much has changed in this chart even though a lot has happened in the past week in the world markets. Are these uptrends deteriorating? Or are these uptrends consolidating before hitting new highs? I can't believe a higher Euro is in anyone's interest at this point, but unless the ECB starts to ease it may be headed higher. The inverted US Dollar will likely move in the same direction as the Euro. These currency trends have been closely tied to the commodity trends, and will likely continue to be. So a higher Euro likely means a higher CRB as well.
There are declarations of recession everywhere (except the ECRI) yet all three energy components shown above remain in an uptrend above the 40-week average and reasonably close to their new highs. More time is needed, but after the action in the market this past week, we are now opening up to the possibility that the commodity bulls will remain in control.
