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.