SUMMARY
CRB Index versus Bonds -> Bullish
CRB Index-> Bullish
Bonds -> Bullish
Oil-> Bullish
Oil & COT-> Bullish
Gold-> Bullish
Gold & COT-> Bullish
US Dollar-> Bearish
US Dollar & COT-> Bearish
DJ Ind.-> Bearish or Sideways
S&P 500 -> Bearish or Sideways
Nasdaq -> Bearish or Sideways
Bonds and commodities are negatively correlated. But this relation is broken this week.
This broken relation affects the expectations on the stock market side. In that case markets can either follow the big trend (which is bearish) or consolidate.
It is allowed to be SHORT on the STOCK MARKET this week.
DETAIL
Long term comparision of S&P500, CRB Index, US dollar, and 30Y Bond Price
CRB Index versus Bonds
Commodities are bullish in relation to the bonds. But as the CRB index alone shows that the bullishness of commodities are weaking and bonds are gettin stronger. This can slow down the CRB/Bond comparision in the image below. Increasing ratio shows that economy is strengtening. Increasing ratio advises that you should be in inflation type stocks e.g. gold, oil, aluminum, industrial material stocks. On the other hand, financial type stocks will suffer e.g. insurance, brokerage.
CRB Index
Strong CRB index favor the currenc y of commodity exporters like canadian dollar and austrialian dollar.
Bonds
Oil
Oil and Commitment of Traders Report
Gold
Gold and commitment of traders report
Trend is bullish because gold is used to hedge inflation. Inflationary trends are high.
US Dollar
US dollar is bearish which is good(bullish) for commodities. US investors tend to invest in foreign stock when US dollar is decreasing.
US Dollar Commitment of Traders Report
Dow Jones Industrial Average
Last bar shows that bulls tried to increase the price but bears pushed the price lower than the open. Volume is higher on the last bar, indicating
S&P 500
Similar to the Dow Jones Index, bulls are tried to increase the price during the week but bulls pushed the price lower.
NASDAQ
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