Wednesday Commodities Round-Up

On the right hand side of the blog you can see a schedule of when I write about certain topics. That schedule has been thrown out the window over the last few weeks as the markets have gone crazy. I'm going to make a concerted effort to get back to that schedule. To that end...

Click on a picture to get a bigger image.



On the weekly commodities chart (the CRB index) notice the following:

-- The 10 and 20 week SMA are both moving lower

-- The 10 week SMA has crossed below the 20 week SMA

-- The 10 week SMA has crossed below the 50 week SMA

-- Prices are below all the SMAs

-- Prices have moved through important technical levels established over two years ago.




On the daily chart, notice the following:

-- Prices have been dropping for about three months

-- The 20 and 50 day SMAs are all moving lower

-- The 10 is moving sideways, but this is the most volatile SMA.

-- Prices are below all the SMAs

-- Prices have been using the 20 day SMA as technical resistance

Bottom line: both of these charts are pointing lower. This is good news for the Fed, as it gives them room to lower rates. Now the next question is would that be a good idea right now considering record low interest rates got us in this mess to start....