Friday, March 21, 2014

Joe Friday-Commodities rally hasn’t proven “new” bull market in play

by Chris Kimble

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No doubt several commodities have shot up like a rocket ship in the first 90 days of 2014. Below are the top 10 performing commodities YTD.  On the flip side, when looking back over the past 3 years, commodities performance has been anything but impressive... actually they've been a place to avoid!

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The top chart reflects that the CRB index over the past few years has been contained by sideways channel (A). The rally so far this year took the CRB index up to its 61% Fibonacci of the sideways channel and looks have created a "Doji Star" topping pattern at (1) and a short-term support line could be giving way.

Joe Friday, just the facts....The rally in commodities in 2014 hasn't proven a new bull market in commodities is at hand, as it remains inside of a sideways channel.

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Is the hottest asset on the planet cooling off? The Power of the Pattern shared with members of late that Coffee looking to be peaking and for those members comfortable with doing so, shorted coffee at key Fib resistance, while 80% of investors were bullish. In just days, Coffee has lost 18% of its value!

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