Commodity vs. Dollar (Bearish Narrative)
The US dollar is 2021 has been blazing its own trail, trending positively even though inflationary pressures should be eating away at its value. It doesn't make much sense for commodities and dollars to go up at the same time. When they move together; they usually move downward together. As the dollar gains value, more...
Higher high, bullish cloud breakout on daily, bullish momentum indication on weekly and daily.
I highly recommend you to zoom out the weekly time frame, as space is clearly opened to 24-25 target zone.
DBC is going to be the relatively strongest and best performing asset class for months ahead. It is also the best hedge against a cost inflation pressure and for...
DBC commodity index, Commodity prices have stalled but should continue higher as mother nature continues to go haywire interfering with the growth of crops. with a lower yield and ever increasing demand producer prices must raise to accommodate for the hardships therefor that price increase should become reflected on the index price as well.
Definition of a commodity super-cycle:
Commodity super cycles are decade-long periods in which commodities trade above their long-term price trend.
Using a weekly candlestick to see the bigger picture.
DBC is breaking out of a 10 year long downtrend.
On Balance Volume is supportive, as it is also breaking higher, reaching levels from a...
Commodities as a whole have been getting a beating for a while now. If you zoom out you will see a MASSIVE consolidation triangle. Using Elliot wave analysis we have projected a possible break of this colossal triangle. If we get some movement downwards to wave the 4 correction boxes I would definitely consider adding some exposure to a basket of select...
Monthly Commodities fund
Oil takes up a great percentage in commodities sector
DBC topped about same time when Oil topped around $140
Oil is bottom forming, if not already bottomed this week.
Dollar is topping
High inflation will likely come back with continuous money printing
Increasing national debt has to be addressed soon or later
Treasury yield (real...
I don’t think its a coincidence that commodities across the board are looking bullish at exactly the same time as the economy is slowing down and the Fed is quietly conducting QE4. Fed bought twice as many bonds this month than their monthly total during QE3. October rate cut odds are at 90%.
I don’t think inflation is going to explode tomorrow but I do think...
Just a quick post to say:
- I have been watching diversified commodity indexes recently as they provide meaningful diversification in any portfolio (generally a small % allocation is recommended) .
- Over the past 9 years (as you can see) this has been in a strong and long-lived bear market. The bottom must be somewhere, below $13 is a good candidate...
As global markets were slammed this past week after the US-China tensions resurfaced, one area of the market that has felt the brunt of recent market volatility has been commodities (DBC as a proxy).
With trade tensions resurfacing between the two economic giants, commodities are currently stuck between a rock and a hard place, and as a result of the recent...
After a strong rally in early 2019, commodities seem to have taken a breather in recent sessions. Since mid-January 2019, due to increased global macro headwinds, as well as slowing economic activity in Europe and China, commodities (DBC as a proxy) have been treading water against key safe haven assets such as the US Dollar (Part 1) and US treasuries...
Commodities vs US Dollar:
As can be seen in in the chart above, when commodities are measured against the US Dollar, the price ratio (DBC/UUP) failed to move higher in recent sessions, and is struggling to re-test its 20-Day EMA (Green) and 50-Day EMA (Blue).
See Commodities at a Crossroads? (Part 2) for our commentary
In current market conditions we are expecting higher volatility in equities due to ongoing issues, during times like this diversification is key.
See commodity tracking fund index above for security + growth over coming months
Expecting to see $18 in the near future
I am still dollar cost averaging in equities but adding this index to portfolio is key to...