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.
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…
Tags: $CRB $SPX $SPY $IYT $SPY $MDY $IWM $DJIA $DJP $DBA