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 |
This is the big story of the week. Bond rates broke out leading the US Dollar higher, and pushing down oil and other commodities.
Here is my favorite chart of my two favorite commodities. They offer the best competition to oil without the global warming emissions. Natural gas is entering its weak season so I am keeping some money available to invest when it pulls back. I already own enough of the uranium ETF for now, but may add to it if and when it breaks this downtrend.
The pullback in grain prices is working in favor of livestock prices. I've sold most of my commodity ETFs like DAG, but still hold the COW ETF for the long run. And planning on buying back DAG at some point later.
The industrial metals have fallen below the 40-week. That is not a good sign for commodities in general and maybe for global growth. Hard to know how much of the metal weakness is due to the softening economy versus the bounce in the US Dollar. Either way, it is definitely an important development and is a warning signal.
