Commodities Are in a Sideways Market
Commodity prices are going nowhere…
The Thomson Reuters/CoreCommodity CRB Index tracks prices of 19 of the most commonly traded commodities in the world.
These include aluminum, cocoa, coffee, copper, gold, oil, soybeans, sugar, and wheat.
And since the start of the year, it’s been stuck in sideways trend.
The CRB Index is in neither an uptrend nor a downtrend. Neither the bulls nor the bears are in command.
But these periods of sideways drift don’t last forever. Eventually, a new trend will be established – either up or down.
In the meantime, it’s going to be a frustrating time for commodities investors.
And gold – which tends to move alongside commodities – could continue, as Bill puts it, to “wander around, apparently lost.”
Going back to 1994, when the CRB Index was launched, gold and commodities have tended to move in the same direction.
The two have what Wall Street-types call a “positive correlation” of 0.62.
A correlation of 1 means the two move in perfect lockstep. A correlation of 0 means the two move randomly in relation to one another.
P.S. It may sound strange… but there’s a way to profit from commodities whichever way prices head next.
You almost never see average investors making trades like this, because they don’t know how. But traders at Goldman Sachs, Morgan Stanley, and Deutsche Bank do it all the time.
According to oil expert Dr. Kent Moors, you could walk away with $96,365 on this single trade. And that’s just one projection. Dr. Moors says this trade could easily go as high as $114,000. Read on here to learn more.