Commodities ain’t looking so hot…
The unweighted commodity complex (GCC) has been consolidating sideways for 4 years after a 5 year bear market that essentially saw it get cut in half. So its been building a very solid base. Unfortunately, it is now breaking down. With how tight the 200 week Bollinger bands are, this move is going to be large and sustained for a long time.
Now, it is possible that this initial move lower is a headfake to bend the Bollinger bands outward before it reverses and heads for the top band. But in this backdrop, is anyone willing to bet money on that?
Absolutely unbelievable stuff.