Saturday, May 18, 2013

CRB Rind Index Weekly Chart

The market action is remarkable these days. There is no other point in history to compare things. The unprecedented central banker actions continue to rocket the indexes higher. The CRB Rind Index is a valuable tool since it is not easily manipulated and also directly reflects the health of economic sectors such as manufacturing. Reference the Other Market Signals page for more information. The Rind is made up of the every day materials that thousands of small businesses rely on such as leather, tallow, print cloth, and many other often-ignored, but vitally-important, commodities. The weekly chart with 13-week MA cross is a great indicator for the stock market.

4/3/13:  Market Sell Signal; 538.62
11/26/12:  Market Buy Signal; 514.92
10/15/12:  Market Sell Signal; 516.37
8/6/12:  Market Buy Signal; 508.48
3/26/12:  Market Sell Signal; 540.37
1/9/12:  Market Buy Signal; 527.46

When the Rind crosses above the 13-wk MA, the stock market will rally since businesses are seeking more raw materials and good times are ahead (green circles). When the Rind stabs down through the 13-wk MA showing less demand for these important materials, the economy and markets are on the skids (red circles). The negative cross occurs over one month ago but traders do not care. The only thing that matters right now is the Fed and BOJ easy money. All price discovery is lost and no one really knows what any asset class is truly worth due to the central banker intervention. The easy money causes traders to ignore economic data, earnings results, and especially weaker copper and commodities. How does it all end? Anyone's guess is valid. The CRB Rind signals that the SPX should be dropping not making daily new all-time highs and verifies how the central bankers are the main driving force behind upward-moving markets. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Reference the CRB Trader site for excellent charts and information concerning commodities.

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