Loading ...US equities vs commodities….
Today was a gut punch for anyone expecting commodities to outperform US equities anytime soon.
The ratio (GCC:$indu) has pretty much been a straight line down since 2011–not even a countertrend bounce or even a multiyear sideways consolidation. Not a single higher high on the weekly chart to even keep bears honest.
The ratio has not tested the declining 200 WMA in 9 years.
It is unbelievable really
Feels like Commodities are in a forever bear
The reversal candle that $silver put in against pretty much every asset class in the world last week is pretty telling. Unless silver mounts an outrageous turnaround this week and next, I don’t think last week’s peak is going to be taken out for years.
The Dow, on the other hand, has already made back about half of its losses vs silver last week so far. The rest of this week is going to be extremely telling. Absolutely nothing would surprise me at this point. If you told me the Dow was going to tack on another 1200 pts tomorrow, I wouldn’t bat an eye.
The commodity markets are rigged, folks.
This is not a joke.
I would not even consider commodities over US equities until the $CRB takes out its 2018 high and proves that it can actually make a higher high.
The silver chart looks pretty broken to me, barring a miracle over the next couple of weeks. It has to do what the miners did in January 2016.
Unfortunately I agree with you Nautilus
Silver Is Not looking healthy at all
last week changed it’s character
I would not be surprised if the spot price of silver breaks below $16 and heads back to $15 or lower. Some large banks will profit greatly if they can pull this off in the futures market.
Do you remember how low the price of silver during the financial crisis? I think it was taken down to around $9 or slightly lower in October 2008.
The price of copper has not come close to keeping pace with official inflation rates in the U.S. for the past 50 years.
Real inflation has been at least 2X the official inflation rate in the U.S. over the past forty years. The U.S. BLS plays creative accounting games to make official inflation rates very low. This allows businesses and government to get away with paying low wage increases to workers for the last 40 years.