Update of the significant commodities making moves after yesterday's good-cop/bad-cop routine from the FOMC.
- JO remains a long/buy on the daily charts.
- We are approaching upper resistance but coffee is looking decent in the medium-term.
- DBC is listed as a neutral.
- A lot people have been hammering commodities after today's open but thinking about the daily charts and looking closely at the MACD(13,34,0) indicator I think a double bottom has been put in. This will be monitored closely but a breakout seems imminent.
- Listed as a speculative buy/long.
- The turnaround that I was sensing in cotton has materialized. Not only is a strong advance being seen after yesterday's rise but a breakout of the long-term downtrend has happened (again).
Crude Oil: USO
- A sell/short signal is still issued.
- Yesterday was a real roller-coaster! I maintain my short positions on crude, especially after some disheartening comments by the Kuwaiti oil minister.
- Gold is still a speculative buy on the daily charts.
- I maintain my long-term view that gold could still decline to $1000.
- COW is listed as a long/buy on the daily charts and still quite precariously positioned near the last resistance level.
- Momentum has begun to develop beneath COW and I have issued a short term 'buy' on it.
Natural Gas: UNG
- Natural gas is listed as a long/buy.
- Like crude oil UNG also went on a roller-coaster yesterday. A convincing breakout was witnessed yesterday followed today by a near complete retracement today (a getting worse as the day goes on). The close might happen below our breakout line, however the reason I am recommending UNG as a long/buy is because of the massive amount of divergence that has developed on the MACD stretching over four months.
- We are still in the major buying season for natural gas which lasts until June, approximately.