Commodity tracker dunks below the SMA 200

Commodities are starting to crack

Disclaimer: commodities are notorious for rotation, as if the hedgies, quants and black boxes are playing Whack-a-Mole, roving the landscape rotating to the next play before they leave it high and dry.

But here is the CRB tracker DBC doing something pretty notable, don’t you think?

Even as DBC has out-performed the broad SPX since July (lower panel) its nominal self is cracking the 200 day moving average today (note that CRB/DBC driver WTI crude oil cracked the SMA 200 in early August, three times tested the breakdown and three times failed while loose oil tracker USO is cracking its SMA 200 today).

Just a little chart pertinent to the ‘last inflated man standing’, the Energy sector (Gas is also taking it on the chin within an intact uptrend). Right minded gold bugs know exactly why commodities should break down in order to have a positive fundamental view on the miners.

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