Commodities complete counter-trend/bear market rally? Commodity crash update-
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Commodity Index (CRB) continues to create a series of lower highs inside of a multi-month falling channel.The month of October looks to have been a counter trend rally inside of falling channel at (2). This pattern has been suggesting to get out of or reduce Commodity holdings since the break of support back in May. (CRB Quote here)
The above chart is an update to the Commodity wreck post of 10/20 and the chart below (see post here)
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The "Power of the Pattern" continues to suggest that portfolio construction/risk allocation should be based upon the above chart, first shared on 10/17 on dshort.com (see post here) and on the Reformed Broker (see post here) See how the CRX is doing today... (CRX Quote)
The above chart reflects that a breakout in the U.S. Dollar and a breakdown in the CRX index took place in 2008 and these patterns look to be much the same again. Patterns, which represent human behaviors can repeat.
Let the patterns be your friend and don't become a member of the "Institute for Advanced Hindsight!"
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