Click on Chart to EnlargeThe chart above is the CRB commodity index and shows a large rising wedge which is usually a bearish continuation pattern. Also, this week formed a bearish engulfing pattern while overbought (weekly stochastics, etc). A chart of crude oil looks similar. I'd say it's time to let loose any commodity or natural resource stocks on an intermediate term time frame.
Some particular stocks that stand out are FMC, AGU, ZEUS, STLD, CAM, COG, GOLD, ABX. Related is the XLB ETF which formed a dark cloud cover candlestick pattern this week.
Stay posted for a new intermediate term trade early next week.
http://seekingalpha.com/article/182579
ReplyDeleteThanks Cdude
ReplyDeleteI read that article from Trimtabs. I don't have expertise in that area but it does make a degree of sense and fit with the cash data and fund flow info that I do have access to.
I don't know the legality of any such activity as far as the FED or Treasury goes. Seems very dangerous and not in the true public interest for the FED or government agencies to be able to buy large equity interests or speculate in the markets.