COMMODITIES

IS WTI CRUDE ABOUT TO OUTPERFORM CRB INDEX?

When we ran the comparative performance models yesterday we noticed that the OB/OS indicator for the WTI CRUDE/CRB INDEX ratio which had been dropping from 100 had reached 76.8 and then turned up and is now rising at 86.9. In addition the short term Direction Indicator is rising and the InvesTRAC forecaster shows a rising trend into the second half which means that the ratio should move higher as WTI Crude outperforms the CRB index in relative  terms.

EQUITIES TO UNDER PERFORM COMMODITIES

COMMODITIES SETTING THE PACE

COPPER CORRECTING BRIEFLY

Copper has fallen more than most commodities during the recent sell off in commodities in general. And what is so interesting is that a spokesman for the Chilean state owned copper mining company Codelco commented on 7 August (price on chart highlighted 5 August) that "Chinese imventories seem to have decreased and now the industry is catching up again" and a Chinese metals traded asserted that demand in China would see to it that the price of the metal would gain 8 per cent by year end.