Commodities Continue to Languish...8.6.13

The simple P6 momentum indicator once again kept us out of today's red market today.  There are times when positive momentum is relatively to forecast...and then there are other times (most of the time) when the vagaries of the market and macro economic forces make the logic behind market moves essentially unpredictable. From a risk management standpoint we just want to capture those easy moves.

Commodities continue to under perform SPY and the X sectors.  Such weakness is usually a symptomatic of underlying market weakness and lack of commitment in the industrial sector.

The futures based commodity ETFs, DBA, DBB and DBC are riding in the back of the momentum rankings, a further indication that institutions and large traders are skeptical of the market ability to move forward in a positive mode.  Despite a variety of good earnings reports the true growth potential of the market is still in question.