GTX Goldman Sachs Commodity Index Weekly Chart Displays Inflation Drama

GTX, the Goldman Sachs Commodity Index, explodes higher last week. Commodities are the only sector holding the US stock market together. GTX reclaims the 20-wk MA at 3724 a big deal. The new week of trading begins at 3752 remaining above providing some bullish confidence for stocks.

Commodities are key because of the US mid-term elections. Both corrupt political tribes are spewing their lies as usual with the election only 29 days away (11/8/22). US elections are always the first Tuesday after the first Monday in November. The tight band squeeze in November 2020 sends commodities higher.

That is when King Donnie Trump, the orange-headed bloviating carnival clown, was defeated by Sleepy Joe Biden, the confused and corrupt Alzheimer's patient. Commodities have never looked back. Traders and investors knew that Biden was against the oil and gas industry that creates a lot of good-paying middle-class jobs.

In a nutshell the chart shows the Biden Inflation occurring. Uncle Joe, who's moving kind of slow, at the junction, started his idiotic and detrimental war on the US energy complex in 2021. President Biden touts windmills, solar cells and glorified golf carts (EV's) as the path forward. It is moronic and dangerous since none of this stuff is ready for primetime. Do any of you have an idea on how much power it takes to run an aluminum smelter? No, you don't. Let's just say it will not be running on windmills and solar cells.

Look at the rapid rise in inflation that represents goods inflation rather than services inflation. Americans were screaming bloody murder in May and June of this year as gasoline and food prices became unbearable; they still are. Biden pulled a dangerous trick depleting the SPR (strategic petroleum reserve) to bring down oil and gasoline prices. It works, for a while. Now the SPR is way down and most of that oil remaining is not as conducive to refining.

It is always funny watching the corrupt politicians that sell their souls for votes. Biden was feeling good going into the election with gasoline prices trending lower but they are on their way up again as well as wheat and other commodities. The timing is interesting because inflation is at top of mind, as the black lesbian Whitehouse spokeswoman says, in the American psyche going into the voting booth and, if the chart continues higher, the only thing talked about when November hits will be inflation.

The democrats will likely be wiped out in the election with the exception of dumbie Trump's picks that struggle. 70% and more of the country think things are on the wrong track which is the kiss of death for the democrat tribe.

The GTX daily chart displays a death cross that just formed so it makes sense that price is rallying (it usually does when the death cross occurs on the daily chart). Watch the 50 and  200-day MA interaction for GTX to verify the path forward. If the 50-day MA remains below the 200-day MA and is dropping, commodities will roll over and die. If the 50-day MA flattens and curls higher again, which may occur since price is above the 50 pulling it higher, the bulls may be off and running and nullify the death cross with a quick golden cross on the daily chart.

GTX is an interesting chart to watch into the mid-term elections.  You can gauge the progress of the Biden goods inflation. 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 10:21 AM EST: GTX3747. The 20-wk MA is 3723. The 50-day MA is 3593 and the 200-day MA is at 3608 with the death cross in play.