The man dubbed by Barron’s as the “technician’s technician” Martin Pring of Pring.com shares why he thinks that a commodity bull market is about to start again.
In June, I discussed “Are commodity prices about to explode?” The question mark was there because a lot of ingredients were in place for a major rally, but I also pointed out that we really needed confirmation from some of the key averages.
Now I am going to remove the question mark, because two months later, a substantial number of indicators are crying “commodity bull market.” Take a pinch of salt with the explode part of the headline because there are no known techniques for consistently forecasting the character of a forthcoming price move. I am not ruling it out, merely forecasting that in one way or another prices are likely to be substantially higher by year-end.
Commodity indexes are a disparate bunch, and some have already experienced tentative breakouts while others look set to. What’s really interesting is that traders in other markets, which often anticipate commodity rallies, have already started to discount inflationary times ahead. In effect, they are telling commodities that it’s time to get moving.
….for a larger chart view & 3 more Charts & commentary go HERE