Commodities not buying it

Commodity tracker DBC remains vulnerable

And I remain short.

As the stock market bounces and some outlier commodity segments also bounce, here is a conspicuous non-participant, as the “last inflated man standing”, Energy commodities, get hit along with the Agriculturals and Industrial metals.

As for my short (the only one I hold currently) I don’t want to see another pop above the moving averages. Right now DBC is filling a gap. I’d like to see it do that and keep on dropping. Now let’s see what forward reality holds.

This is what we want to see happening as the oh so hawkish Fed awaits. What gold bugs do not want to see is a critical mass of inflation bugs still infesting the sector. You’ll know they are there if gold stocks go down because inflation items like commodities are going down. Thus far the miners are resisting the pull of their majority ‘off base’ investor base. Is the gold stock sector cleaning just about done?

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