Copper/FCX is breaking key support (see post here).
Rough Rice is down “lock limit” again today and has declined close to 20% since its recent highs (see food price peak here). Check out all the grains of late?
Long-bond(TLT) looks to have held on key support and is moving higher with lopsided sentiment as bond bulls recently had declined to less than 5%. Bonds may be boring, yet buying on key support is usually a good idea for portfolios (see isn’t this exciting bond post here)
EFA/EEM chart below, which gave its FIRST SELL SIGNAL since the summer of 2008! (see post here) This chart suggested that “risk was about to move much higer!”
CLICK ON CHART TO ENLARGE
What does lower copper prices, lower grain prices and a rally in bonds usually spell? SMELLS LIKE…..A market that is moving away from the “growth story!!!” Look how some of these “scoring on defense plays” are looking today… Copper (SMN) Grains (AGA) Bonds (TLT) Inverse EEM (EEV)
CLICK ON CHART TO ENLARGE
NDX 100 is testing key support in the chart above, while the 500 index and Mid-caps remain a little ways above key support. Support is support until broken! With Copper/Grains reflecting weakness, a EEM/EFA sell signal and bonds reflecting strength on support, these support lines ARE FACING their BIGGEST TEST since last September!
Gary….A follow up. It is this issue that had me suggesting the purchase of Silver (SLV) last week versus Silver stocks (SIL).
Gary…Thx. Oil stocks and gold stocks are still stocks. If oil and gold go up, yet the stock market tanks, GDX and XLE, OIH and IEZ and other stocks related to oil and gold can and most often do go down with the stock market. Look at 2007/08. Gold did pretty well, yet how did gold stocks do? Can you say Titanic?!?!?
Great post Chris. Seems strange how OIH has taken such a hit despite april crude futures surging 6%. MDY looks like it has hit support now
pH…Thanks With Grains and Copper looking to have peaked and multi-year support looks to have held on TLT, it looks like a new trend is attempting to assert itself. Smells like “weakness?”
Just wanted to say congratulations on having a great day Chris!