Tuesday, July 2, 2013

Commodities Continue Decline...7.2.13

You would think that with a recent rally in equities and the push back above DOW 15000 that commodities would be making a parallel bullish move.  That turns out not to be the case.

Although we had suggested in a post some 2 weeks ago that commodities would make a similar recovery if equities popped, there is no indication that is happening or is likely to happen in the near future.
The best looking charts of the bunch are USO and XLE, which happen to be the only charts with upslope RSQ lines.

It goes without saying that CASH is the only strategy to play with this model for the present time since if there is another leg down the odds of commodities rising only dims further.
Sometimes it helps our bottom line by analazing not what to trade, but what not to trade as well.
Click once on chart to clarify.