"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Continuous Commodity Index grinding higher but overall trend lower
Hi, Dan.
ReplyDeleteI'd be curious to see what you think of the weekly chart of the CCI.
Thanks!
To my pal the one and only Turd;
ReplyDeleteThe weekly chart of the CCI is still dominated by that large down bar made the last week of April which took it down below 640. While the bulls have managed to stave off a double top formation, they need to take price up towards 675 or so to prevent a bearish flag from forming. They are fighting valiantly but so much depends on the risk trade. If the funds get inclined to take on more risk again, they should be able to accomplish 675 - 680. If risk aversion continues, a lot of which is dependent on what the S&P does next week, we could see the index fall back first towards 650, and then towards 640 again.
I am unclear as to what is coming next buddy. Waiting and watching to see the mood next week and beyond.
I think the Fed is going to have to come up with some sort of stimulus or the deflation mindset is going to get firmly entrenched once again.