From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
It’s been impossible to ignore the strength in commodities this year.
The CRB Index is up more than 50% over the trailing 52 weeks. During this same period, the S&P 500 is up 32%, and bonds ($TLT) are down more than 8%.
Commodities are the clear leaders.
With breakouts from some of the most commonly observed contracts — crude oil, copper, and natural gas — more investors are coming around to the idea that commodities are a viable asset class.
Now that the buzz surrounding this once-forgotten corner of the market is growing, we’re seeing many commodities run into overhead supply zones. We think it would make sense for these contracts to consolidate here. Following such explosive moves off last year’s lows, some sideways action at resistance would be normal behavior.
Let’s look at a few charts that are at logical levels to digest gains. [Read more…]