CRB Rind Index

It is amazing to see the weakness in commodities and the rind index but markets are at all-time highs. Obviously, equities are goosed solely by the Fed, that got cold feet over the last couple weeks, turning on the QE spigots again with happy easy money talk, and creating the recent rally. The Rind Index is important since it represents the lesser known commodities that are more difficult to manipulate and at the same time these materials represent a broad cross section of all manufacturing industries. If companies are not buying raw materials such as tallow, cocoa, rubber, zinc, copper and lead scraps, print cloth and leather, that indicates a slowing economy and sick growth.

Keystone's CRB Rind Index Indicator (Other Market Signals page) uses a 13-week MA as a signal line which indicates bullish or bearish markets ahead. Alas, we live in special times now where the markets are artificially pumped higher by the Fed so the negative affects that should be occurring as a result of the negative April cross, are not yet materializing. The rind is at 520.81 and the 13-week MA is 524.22 so perhaps the money-pumping will create a positive cross to signal the all-clear for market bulls ahead. However, with the rind clearly indicating a sick and slow-growth environment, the expectation is that the actual conditions should create markets weakness in the days and weeks ahead regardless of the money-printing. 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 lots of useful information on commodities.

CRB Trader