Commodity Prices Are Rising Again

Chart 1 shows the DB Commodities Tracking Fund (DBC) challenging its late November peak at 25.33. A close above that chart barrier would signal even higher commodity prices. Most commodity indexes benefited from crude oil closing back over $60 and strong gains in precious metals, copper, and agricultural markets. [Corn hit a new 10-year high]. Since most commodity indexes have a heavy energy weight, they've been held down by energy prices since the start of the year.

Chart 2 gives a better idea of how commodity markets are doing outside of energy. The CRB Continuous Index (CCI) has a smaller energy weighting than most other commodity indexes (including the CRB Reuters/Jefferies Index) and a heavier agricultural weighting.

Chart 2 shows the CCI breaking out to a new record high on Thursday. The commodity bull market is alive and well. The Fed recently cited the drop in commodity prices as evidence that inflation was slowing.



Back in October, I wrote that the bull market in commodities was correcting but, according to historical cycles, will run 9 years total and end around 2010 (prior starts - 1911, 1941, 1971, 2001) Full post HERE.

Yesterday, I linked to The Big Picture's look at Reuters/CRB Futures Index.

Back in November, I wrote Progression of the "Fever" Phase of a Coin Market Cycle and will tell you that we haven't even seen the premiums expand much on the older coins which says we have a lot more upside in 2008 & 2009.

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