Dow Jones-UBS Commodity Index broke primary support at 136, signaling another down-swing. Target for the breakout is the 2012 low at 126. A peak below zero on 63-day Twiggs Momentum already warns of a primary down-trend.
* Target calculation: 136 – ( 144 – 136 ) = 128
A fall in commodities warns of slack global demand and a bearish outlook for stocks. The large divergence between DJ-UBS Commodity Index and the S&P 500 should be treated as a caution.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.