Tuesday, July 15, 2014

Charting the Roll-over in Commodity Prices

Corn is down another 7 at $3.74.40 i.e. 2010 prices.
Gold too, down again today following yesterday's rout. $1297.90, last.
From the Short Side of Long:
Chart 1: Commodity rally is in reversal, as CCI trades below 200 MA… 
Continuous Commodity Index vs 200 MA Source: Short Side of Long
The rally that started at the beginning of this year is quickly reversing. While not all of the gains have been given back (yet), the truth is that the current price conditions are not looking that good for commodities. Continuous Commodity Index has now fallen below its 200 day moving average, something that rarely happened during 2001-08 and 2009-11 bull markets. The more common CRB Index is also not too far off either. Let us study at some of the individual commodities that represent four major sub sector: energy, industrial metals, grains and softs....MUCH MORE