Wednesday, February 27, 2013

Keystone's CRB Rind Indicator Turns Bearish (Tentatively)

Since the Rind is only under the 13-week MA by a smidge, a few days are required to see how it shakes out. For now, the Rind has lost the 13-week MA at 533.47 which is a bearish signal for markets moving forward. CRB Rind Index is important since it is hard to manipulate and it directly indicates the use of everyday manufacturing needs such as tallow, cocoa, rubber, zinc, copper and lead scraps, print cloth, leather, and many other overlooked commodities. 

2/26/13:  Market Sell Signal; 533.47 (VOIDED, by 3/1/13 it remains on a buy signal)
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.

Further information on commodities is found at the www.crbtrader.com website. The chart is from this site with annotation by Keystone. 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.

 Note Added 3/2/13: The bulls pull out a big save goosing the markets higher and the Rind recovered to close at 535 above the 123-week MA at 533 and remain on a 'Buy' signal. Keep an eye on it next week.
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2 comments:

  1. MCAPFebruary 27, 2013 at 12:05 PM

    In accordance to you post the "educational" implications would be what as per commoditys prices in general. I have been watching wheat, live cattle, lean hog, and of course our coffee closely. Unfortunately with this markets you have to buy infront of the pop or you will get your face ripped off buying the breakout. I think wheat has more room to go down 6.52 or so and coffee back under 1.400 - we are looking for pop in these markets before the end of 2nd quarter 2013. What does the Rind imply?

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  2. Keystone SpeculatorFebruary 27, 2013 at 12:16 PM

    Yep, commodities is too general of a word to use. Commodities is meant in the context of $CRB, $GTX and $GNX. The Rind is all the lesser known commodities that go into everyday products, the items that all the Ma and Pa manufacturers need, so the Rind is used as a forward-looking signal. If companies are not ordering all these raw materials to produce widgets, then they simply plan to not produce widgets. It has to be watched a few days to see if follow-thru occurs. The prior crosses all worked out well for forecasting market direction.

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