The commodity currencies have been doing well lately. Interestingly, the industrial commodities are relatively weak. The soft commodities like Agriculture are doing well.
Here are the metal commodities. Nickel has soared because of Indonesia holding back supply. All of these charts below compare to the performance of the $SPX.
Here are the energy commodities. Notice coal perking up after being a very poor performer. We can watch Teck or Walter Energy. Arch Coal in the US is starting to move.
Lastly, here are the Ags.
All of these charts are over a 3 month period. If we are in the next phase of a bull market, I would expect the metals and energy to start kicking in.
I am still bullish on Natural gas related stocks, coal and agriculture. I don't have nuclear on here, but I recently wrote an article on the Nuclear stocks in Canada.
Gold is starting to perk up. It might be early but I am watching it keenly. I think there is a play there based on the end of quantitative easing.
Solar might be pulling back for a while, but I like it in the long term. It has reached grid parity for pricing so that makes it extremely valuable.
To conclude, it is a tricky market here as the Chartwatchers article on the weekend showed one of the largest divergences between the Nasdaq exchange representing growth and the NYSE representing value.
Good trading,
Greg Schnell, CMT
