Agricommodities Indicate Food Inflation
Agricommodities are the raw materials for Processed Food and Beverage industry and Feed for Livestock. The Agricommodities ETF ($DBA) has broken out from a base on both price and momentum. Most of its constituents have been rising steadily for a month. $DBA – Agricommodities ETF Rise in Demand from China China has been buying large…
Weak US Dollar may lead Copper, Yields and EEM higher
US DollarUSD is below its 200 Day Moving Average which signifies long term trend. It has broken below major support zone at 98 and moving downwards.Weakness in US dollar is positive for Copper and Emerging Markets. CopperWeak US Dollar strengthens copper which is priced in US dollar. Largest Copper Miner Freeport McMoran (FCX) which is…
Three Sectors on watch
Consumer Staples, Utilities and Real Estate are showing similar consolidation pattern on daily charts. Relative Strength and Momentum XLU and XLRE have crossed above 10 DMA of relative comparison to S&P 500, while XLP is about to cross the same. XLP is above 61.8% while XLU and XLRE are just below 61.8% retracement of last…
Copper Indications
CRB Commodity index has formed a base and is on the verge of a breakout. Base/Industrial Metals constitute 13% of the CRB Index. Copper is an important industrial metal. Rise in demand for copper is a sign of economic growth. Copper and Base Metal ETFs have given positive returns since April 2020. Copper/Gold The Copper…
Commodities Showing Short Term Strength
The COVID-19 pandemic has thrown the entire world into a fragile economic situation. Lock downs are weighing heavily on businesses and profits.Central banks are trying to fight the situation with a huge monetary stimulus. Add to this the basic emotion of greed and fear and we have a magic cocktail. Money is rotating from some…
Inter-market Perspective on Yields, Bonds, Gold, Stocks
May 7, 2020 The current situation has caused damage to the economy all over the world. The FED stepped in with unprecedented quantitative easing. Historically, QE by the FED has led to higher yields and lower bond prices. We look at various inter-market relationships to find clues about the possible direction of market. Bonds Bonds…
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