Commodities… perfect

DBC is tanking and looking for a date with the SMA 200

“Commodity super cycle!”

“Hyperinflation!”

“Protect yourself! Buy gold, gold stocks, silver, oil and [gulp] copper!”

“Fed has lost control; own real things!”

Heavily followed Twitter influencer/gold stock bull seen just in the last 24 hours cheerleading oil. Some of these dense handles are just never going to get it, I think because they don’t want to get it or are not in business to get it. They are in business to tend herds.

Sorry folks, the Fed is quite in control at the moment and commodities are the raw materials of expanding – not contracting – economies. These ‘real things’ are only useful when stuff is being built or consumed.

Well, I took some liberty with the ‘Fed is in control’ assertion, as they are only in control of what they have to do after being tardy to what was sternly directed by the bond market well before they put on their hawk costumes. The bond market then went on to demand that they wreck (or appear to wreck) the inflated asset market and economic recovery they manufactured during 2020’s inflationary operations.

Here is the commodity tracker, DBC, which happens to be my only short position (taken per the Trade Log when it ticked to the SMA 50 and reversed below it). Importantly for forward gold mining bulls, the tank job in the inflation trades now also includes energy commodities (ref. Gold price is spiking!).

But we may have to puke out more of the inflation bugs – like the influencer noted above – first.

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