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Point & Go Figure: CR/Y, DX/Y, TY/H6, NEM, Major Index Overview

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What to make of commodities here. Is it the case that, again, we are so flush with liquidity that absent a compelling case for stocks, bonds, or real estate, that commodities are destined to become the de facto destination for capital? Is it just inflation? What happened to deflation?

The key components of deflation are falling commodities prices, rising bond prices, and a rising dollar.

The RJ CRB Index, below, has changed technically since I last updated it. While last week it was bumping up against downtrend resistance, the recent moves in gold, silver and crude, which account for 30% of the index weightings, have been strong enough to clear initial resistance and move within shouting distance of the September high of 336.

RJ CRB Index (CR/Y)

Meanwhile, overlaying DeMark indicators on the chart, the CRB Index is near a TD-Sequential 13 on the weekly chart, currently at 12, while underlying components gold, silver, and crude are at, or very near, significant DeMark upside exhaustion signals on their charts as well.

US Dollar Index

The US Dollar Index has reversed down on a point and figure chart, but remains on a longer-term buy signal with trendline support in the 88 area and a long-term price objective based on the October breakout of 99.

T-Notes March Contract

Newmont Mining (NEM)

Major Index Overview

S&P 500 (SPX)

Nasdaq-100 (NDX)

Dow Jones Industrial Average (DJIA)

If you would like a chart reviewed, let me know here.

I have added text and illustrations to the charts where necessary.

Charts courtesy Dorsey, Wright & Associates

No positions in stocks mentioned.

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