Tag Archives: CCI

Commodities Roll Over

NFTRH had projected a top of some kind (whether merely corrective or terminal) in the CCI commodity index as the leaders in Agriculture were due to roll over from excessively over bought (and over hyped).  We have been describing what has been going on in commodities as a good old fashioned rotation of rolling speculations with the hedgies, various other black boxes and momo’s playing the sector.  There is nothing but hot air to the noted support level.

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Commodities Are an Important Player in Today’s Theater

If commodities were on a bull instead grappling around for support the Fed would be in a box if they were to seek to promote inflationary policy against the prospect of moon-launching commodities.

Instead, the CCI equally weighted commodity index has looked like crap since the QE3 announcement.  This either implies undeniable deflation is at work or a pause before a next leg up that would erupt soon.

Here’s a chart showing the support we’ve been watching in the newsletter for many weeks now.  If CCI were to break below 560, the bearishness that I think is on tap for next year would be indicated NOW.  Best to keep cash and put risk management first.  But as it stands, CCI is above support.  That’s a fact.