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 |
Ken Tower just bought DBC for his clients after selling a few weeks ago. He protected profits and has now bought back at a lower price. So that means he sees commodities headed higher again in the weeks ahead.
I was watching Kudlow and there was a lot of discussion about the gold /oil relationship. Gold buys a lot less Oil now than it used to making Oil the superior commodity to own.
I'm thinking that oil pauses or consolidates soon. The fact that most commodities are correcting a bit, led lower by gold, combined with the fact that the oil related stocks have underperformed Oil... seems to indicate that it is time for a pullback in the price of oil. I'm not making any big bets either way though. I'm just buying the dips and holding because, let's face it, who knows.
Cattle and Hog prices look like they are breaking higher, joining the party late. As grain prices dip, livestock prices move up. I know nothing about livestock, but you gotta believe there will be livestock shortages reported soon along with rice and most everything else except the number of people on the planet.
As I said, I'm done trying to buy in and sell out of commodities for a trading profit. The uptrend is too strong and I'm not nimble enough as a trader. On Monday I'm buying a forest products mutual fund and will just hold and forget about it. And I'll continue to buy into the commodity and leveraged-commodity ETFs. I'm still not buying industrial metals or the related stocks, but that could change soon.
I don't know much about lumber either, but this could be a profitable trade. Looks like prices are bouncing off the lows.
