A short blurb from #21, dated 2/21/09:
Commodities
Commodity charts generally look awful, after having shown signs of attempted bottoms. Obviously, the two scenarios noted above come into play here and since the dollar’s fate is not yet resolved, neither is that of the commodity complex.
One positive sign is the BDI (Baltic Dry Index), which has risen strongly off of the bottom. Somebody is beginning to ship something somewhere and I believe I read on an NFTRH subscriber’s daily note that it is due to China’s stimulative efforts. As an aside, unlike the US and its welfare package designed to impoverish the entire country with more un-payable debt, China has actual reserves that it can put to work. It was mentioned in Friday’s update that MACD’s in most markets looked bad, with the exception of China. That market may be one to keep an eye on going forward from a relative strength perspective.
Here is the BDI, lonely bullish sentinel that it is.
[BDI chart omitted]
