Click charts to enlarge On short term charts of the commodities, they appear to be in trouble. But taking a longer term perspective shows that they are still within the limits of their channels, as shown on the charts of DBA and DBC above. Granted they are at the bottoms of their channels and looking precarious, but despite recent weakness, it is too early to declare an end to the commodity bull.
3 comments:
The Dow Jones-AIG Commodity Index (^DJC) looks like this too...
In the next couple of days the money would like to find its way, maybe commodities and agribusiness/mining are the next station again? :) I hope yes. :D
The financial sector shows weakness today... maybe its the end for them, for a while. Wachovia, our eyes on you. :D (sorry for my bad english)
AAPL and SNDK are sinking. We can expect more money coming into fertilizers tomorrow.
We're actually hoping the fertilizer stocks stay down before earnings are released so they have room to make a very decisive breakout. If they rally ahead of earnings, we won't know whether or not we should hold them when they report. This Thursday, the 24th, is the big day.
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