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Re: Question/Lee/Trades
In Response To: Re: Question/Lee *PIC* ()

Hi Trades,

Thanks !! You worded it better than I on understanding the Qindex posts.

Two points:
I found it interesting that out of the "clear blue" Qindex is posting on the "major grains". He has made "no mention" of the CCI/CRB.

I was curious as to what he might be seeing all of a sudden.

The CCI comment came from Jim Wyckoff:

Text below, I don't think there is a problem posting it with the reference above.

Your earlier sugar post got me thinking about this when the Qindex posts rolled in.

In the below Wyckoff text he mentions the list of markets hitting all time highs. He makes same comment as yours on Crude and until Crude starts to fall off these other markets should continue to trade sideways to higher, then fall off when crude falls off.

All makes sense to me. Also implies to me that Dx has to remain "weak" to "down" for these markets to remain where they are or go higher.

Right now I'm sitting on a Dx fence and will likely close it out Sunday night on first sign of upward movement.

Here's the Wyckoff text, crude comment at end.

Strong price rallies in crude oil and the precious metals futures markets on Wednesday propelled the Continuous Commodity Index (CCI) to a new all-time record high of 691.09, in its present configuration. The CCI is a basket of 17 major raw commodity futures prices rolled into one composite price index. The CCI, formerly called the CRB Index, dates back to 1957, in one form or another. The fact the CCI on Wednesday forged a new all-time high underscores the strong rallies that have been occurring across many commodity markets the past several months. Indeed, gold futures this week hit a new all-time high, while silver futures are at a 31-year high. Corn futures last week hit a new all-time high, while coffee futures prices this week hit a fresh 13-year high. In recent months, cotton, cattle, lean hog, cocoa and copper futures all hit new all-time record highs. The present overall bullish technical posture of the CCI index (strong price uptrends in place on the daily, weekly and monthly charts) suggests the path of least resistance for most raw commodity prices will be sideways to higher for at least the near term. It would take a decline in the CCI index below strong technical support at the March low of 635.07 to produce serious near-term technical damage to then suggest the index has put in a major top. Crude oil is the leader of the raw commodity sector. If crude oil prices start to show significant weakness or serious near-term chart damage, it would then suggest most other commodity markets would also be in danger of trending lower on the coattails of crude oil. Stay tuned!--Jim Wyckoff

Thanks, Lee

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Re: Question/Lee/Trades