Monday, June 20, 2011

Commodites thoughts

Just looking around the markets. Corn peaked last week (for now) and that may have had something to do with the Senate vote to kill ethanol subsidies. Maybe.

Check out these three charts:

This is the coffee ETN. Looks bad for bulls, great for addicts such as yours truly.

This is the sugar ETN and it looks mighty sweet (come on, you where thinking the same thing).

And here is Brent crude oil. We all know that West Texas broke down but this one makes me a lot more comfortable with my long-term bull call on energy.

The point - not all hard assets are bad. In fact, I think most are quite solid.


Amalan said...

I don't know if I am not understanding your view properly, but isn't Brent's RSI trending down? I checked OIL, and it seems the RSI is trending down there as well, with MACD in negative divergence. I believe there is a short term break down. Though long term trend could be up for oil/crude, I am not seeing it too clearly at this time.

Quick Takes Pro said...

I don't see the trend or the meaning in RSI or MACD here. The point was that Brent still has a rather important support just below.