Commodities giving a heads up??
I do track the DBB and DBC on the side, and particularly over the weekly charts. Something I want to highlight is that the charts are beginning to signal something ominous, as the equiy markets are defying gravity.
The DBB (Base Metals ETF) and DBC (Commodity Index Tracking ETF) both need to be bullish as a proxy lead indicator for equities. This is observed in June 2020, after the pandemic onset shock, when both had a system buy signal that set a long term trend.
Given that, it is currently noted that the DBB ETF clocked a lower high, and a system sell signal triggered. The DBC has a double top and a long bearish candle that looks good to break a trend.
So when base metals and overall commodities do not do well, the general market sentiment is either not healthy or not sustainable.
The next few weeks would be critical...
Heads up!
The DBB (Base Metals ETF) and DBC (Commodity Index Tracking ETF) both need to be bullish as a proxy lead indicator for equities. This is observed in June 2020, after the pandemic onset shock, when both had a system buy signal that set a long term trend.
Given that, it is currently noted that the DBB ETF clocked a lower high, and a system sell signal triggered. The DBC has a double top and a long bearish candle that looks good to break a trend.
So when base metals and overall commodities do not do well, the general market sentiment is either not healthy or not sustainable.
The next few weeks would be critical...
Heads up!
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