Wednesday, October 13, 2010

Chart of the Day - CRB Index

CRB Index has just reached a two year high and the trend is poised to continue longer term unless quickly turns down. We have a weekly chart above that indicates a potential target for the bullish run in the 320 - 340 area during the next several months. The trend is supported by the weakening dollar and by the Fed efforts to fight deflation through inducing inflation expectations via commodities.

The CRB Index has the following composition: Crude Oil (23%), Aluminum (6%), Copper (6%), Corn (6%), Gold (6%), Live cattle (6%), Natural Gas (6%), Soy beans (6%)Cocoa (5%), Coffee (5%), Cotton (5%), Heating oil (5%), Sugar (5%), Unleaded Gas (5%), Lean Hogs (1%), Nickel (1%), Orange juice (1%), Silver (1%), Wheat (1%)

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