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Wednesday, April 3, 2013
CRB Rind Index 13-Week MA Cross Turns Bearish (Tentatively)
The CRB Rind Index slipped under the 13-week MA indicating trouble for markets ahead.Wait for the Friday print, however, to see if the cross is firmly locked in, or not. The CRB Rind reflects the lesser known commodities such as leather, print cloth, cocoa, rubber, tallow, all kinds of raw materials critical to manufacturers that produce a huge assortment of products. Obviously, if the CRB Rind is dropping, it indicates a drop off in manufacturing activity and a slowing economy. Also, the Rind is difficult to manipulate so it provides a more accurate signal than other commodity charts. The Rind dropped under the 13-week MA one month ago but it recovered back above. Will the Rind stay under the 13-week MA this week? Tentatively; 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. So this will be interesting to see if the Friday close places the bears in charge, or, if the bulls spoil the bear's fun once again. The signal is regularly updated on the Other Market Signals page. The chart was pulled from the CRB Trader web site and annotated by Keystone. For further study on commodities, reference CRB Trader. 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.
Japan delivers big easing again and continue to create more bubbles. USA should not follow Japan. We should be the leading if anything.. this is really bad for our economy and market needs a break, I mean an actual break, not only one day but at least one week gap down before fueling the bull again! I hope somebody from the Fed open their eyes.
Yep, BOJ does not disappoint and aggressively weakens the yen. The dollar/yen and euro/yen jumps higher. The ECB rate decision just hit with rates remaining unchanged at 0.75%. U.S. futures are up seven. The euro was sitting at 1.28 and is now at 1.2820, no great moves on the ECB decision.
If bullish on the markets, you want to see SOX 425, otherwise, any market upside will likely not matter, since the markets will reverse and sell off again. If the bulls can punch up thru SOX 425, that will change the game, and create a whipsaw move, and send the SPX to new highs again.
The bears want to see either VIX 14.50 or XLF 17.80 and it will be all systems go for the market downside.
Japan delivers big easing again and continue to create more bubbles. USA should not follow Japan. We should be the leading if anything.. this is really bad for our economy and market needs a break, I mean an actual break, not only one day but at least one week gap down before fueling the bull again! I hope somebody from the Fed open their eyes.
ReplyDeleteFutures bright green! Shorts getting whipsawed again tomorrow. Move to 1580 and beyond back on the table now...
ReplyDeleteYep, BOJ does not disappoint and aggressively weakens the yen. The dollar/yen and euro/yen jumps higher. The ECB rate decision just hit with rates remaining unchanged at 0.75%. U.S. futures are up seven. The euro was sitting at 1.28 and is now at 1.2820, no great moves on the ECB decision.
ReplyDeleteIf bullish on the markets, you want to see SOX 425, otherwise, any market upside will likely not matter, since the markets will reverse and sell off again. If the bulls can punch up thru SOX 425, that will change the game, and create a whipsaw move, and send the SPX to new highs again.
The bears want to see either VIX 14.50 or XLF 17.80 and it will be all systems go for the market downside.