There is a lot of talk lately about the Canadian dollar and commodities that seem to be ignoring its return to weakness. Being a ‘commodity currency’ the CAD is being talked about as a leading indicator on commodities, which I as well believe need to take a breather (disclosure: I own Agri fund DBA, per NFTRH highlight last weekend, as my only commodity holding) and against my XLE holding I shorted crude oil yesterday.
Anyway, I don’t see the ‘leading indicator’ aspect of this. CDW and DBC (commodity fund) bottomed together in January.
What’s more, using a weekly chart we see that they had dropped together pretty reliably as well.
The test of the support going on in CDW right now is probably pretty important to the commodity case, however.Subscribe to NFTRH Premium for your 50-70 page weekly report (don't worry, lots of graphical content!), interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).