Stocks or Commodities???

When we look at the various asset classes, we want to ask ourselves where we’d rather be? Bonds? Stocks? Commodities?

Today’s chart of the day has to be the S&P500 vs CRB Index. To me, it looks like we’re at a critical level of resistance where (for now) it appears that the smarter direction to lean is towards commodities.

1-30-13 CRB vs SPX

We’ll let prices guide us from here of course. A big piece of the $CRB index is in Oil. So let’s keep that in mind. Also, a bunch of these Ags have started to look attractive, so it makes sense to us. Meanwhile, the Transports, Small-caps and Mid-caps that led Stocks higher over the last few months have been diverging negatively vs the S&P500 and Dow Industrials.

Something to think about…


Related Posts:

Are Corn Prices Ready to Soar? (Jan 29th, 2013)

Metals vs Miners (Jan 24th, 2013)

Mid-Caps & Small-Caps at All-time highs (Jan 3rd, 2013)