Commodities and the U.S. Dollar almost have an odd couple relationship, in that most of the time they move in opposite directions. Both the CRB index and the U.S. Dollar currently are facing support and resistance levels that has been key for each, many times over the past 20 YEARS!
This year has been a prime example of “harvesting against resistance and buying on support” in most asset classes. Should investors harvest at resistance in the CRB and Buy on support in the Dollar? Hmmmm…Trillion Dollar question?!?!?
Game Plan….At this point in time, due to the support the dollar is on, combined with only 5% Dollar bulls, Investors should benefit from KEEPING POSITIONS they have and placing TIGHT STOPS on Commodity and Equity holdings, should the Dollar rally on support.