Home > charting trendlines, Financial Ponzi, stock chart breakout, Stock Market, technical analysis > Commodities and Emerging Markets look appealing

Commodities and Emerging Markets look appealing

I have noted that I read the major U.S. indexes as being near the end of multi-year bearish rising wedge patterns.  Now for a little bullishness.  Many commodities have performed very well in the new year, especially agriculture plays.  Things like coffee (JO) and corn (CORN) have broken above trend line resistance.  Their performance is summarized by the grain sector ETF, JJG.

2014-03-27-jjg_CHARTS

Chris Kimble pointed out that some coal names look appealing, and I must agree.  ACI, which has beaten down mercilessly over the last two years, may be ready to run higher.

2014-03-27-ACI_CHARTS

Emerging markets (EEM) have also broken to the upside of resistance.

2014-03-27-EEM_CHARTS

India remains my favorite play in the group, as it may have an inverse (thus, bullish) head and shoulders in the rear view mirror.  But Brazil (EWZ) and many others look ready to rally for a bit.

One interesting sidelight is the behavior of precious metals.  Gold and silver have sold off hard in recent weeks, as have precious metals miners.  It has made for an ugly breakdown of their early-year uptrend.  The hope for bulls is that support shows itself soon, forming the right shoulder in an inverse head-and-shoulder pattern for miners.  We shall see.

2014-03-27-GDX_CHARTS

 

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