Courtesy of Doug Short.
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The Commodities ETF DBC has been a little soft over the past seven weeks, losing around 7% in price (-2% YTD), while the S&P 500 has been flat (lower chart below).
The top chart is the TR Continuous Index, which finds itself testing dual support, one of them being a 14-year rising support line.
This index has been soft for the past four years, while the stock market has continued to rally. In the big picture, what happens here could be very important for commodities overall direction in the months to come.
Some believe in the idea of buying low and selling higher. Is now the time to “Catch a Falling Commodities Index?”
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