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The above three assets are “very sensitive” when it comes to the growth/inflation story. Each of them have been making a series of lower highs since May of 2011! Now they are breaking support lines of rising wedges and pennant patterns.
CNBC wrote and article this week titled “Get ready to play the deflation trade!” (see article here)
I’m not sure this is new news, with these commodities….Copper, CRB, CRX, Gold, Silver and the Shanghai Index all down over 30%+ in the past 18 months. It does reflect that several assets that more often not tell the truth about growth or lack of are suggesting some type of slow down could be working its way into the global community in the months to come!
The key to the growth story is this….will these growth indicators which are down, stop falling? Keep a close eye on them because the stock market in time could be impacted by the message.