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Once support gave way in 2008, commodities (MS Commodity Index) weren’t a good place to hide as a sizeable decline took place. Of late support was broken and then tested as resistance. It appears a “kiss good-bye” took place at (2).
The pattern and situation at (2) is not pretty at all if “hoping” commodities will head higher.
Some might like to see Crude Oil drop further, which could lead to falling gasonline prices, yet a large decline in this index most likely would be suggesting a softening global economy.
Aaron… Harvested BAL. Will look to re-enter going forward. The “No place to hide” has in a capital protection mode right now.
Does this mean that BAL may head lower?
What is the current support level for BAL?
Denis…Funny…it the picture was of me…the back side would be much bigger!
Speaking of bigger…the risk to long commodity holders is really big due to the CRX chart!!!
Chris.. I didn’t know you like gardening?
It’s a good day in the neighbourhood for the shorts..