Is the Supercycle Already Underway?

On Wednesday, we laid out the case for why traders should be paying closer attention to commodities. [Jeff Clark's Market Minute]( Is the Supercycle Already Underway? By Imre Gams, analyst, Market Minute On Wednesday, [we laid out the case for why traders should be paying closer attention to commodities](. Today, we’ll be looking at commodities in greater detail. We’re going to try and see if the coming supercycle might already be underway… To do so, we’ll be examining the Commodity Research Bureau Index (CRBI). The CRBI measures the performance of a number of different commodity sectors. Specifically, 19 commodity products make up the entire index. Recommended Link [The “Empire Killer” Takes Aim at America…]( [image]( When the “Empire Killer” befalls a nation… It can spark bank runs, riots, and looting… Which is why Ancient Greece, the Roman Empire, and Babylonia — all once-mighty empires — fell like sandcastles under the weight the “Empire Killer.” How quickly could America fall? [Click here to find out.]( -- These 19 commodities span the energy, agricultural, and precious and industrial metals sectors. Although the CRBI is heavily weighted towards energy and agricultural products, it’s still an excellent overall gauge for how commodities are performing. And right now, the CRBI is trading at upward levels we haven’t seen since August 2022. Let’s look at a price chart of the CRBI below so you can see what I mean. [(Click here to expand image)]( There are two important things going on with this price chart of the CRBI. The first is how the CRBI is trading above three key moving averages (MA). They are the 20, 50, and 200-period averages. Long-time readers will know that these moving averages do a great job of showing us the short, intermediate, and long-term trends. When a market is trading above all three moving averages it’s a strong sign of bullish intent. The second important point is that on April 1, the CRBI broke through the key resistance level of 290. This level was a significant high the CRBI registered back on September 15, 2023. Immediately after establishing that high, the CRBI fell by over 11%. Reclaiming this level is a major milestone for commodity bulls. The combination of the CRBI trading above its key moving averages while breaking through a prior resistance level should have us on high alert. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Traders should be on the lookout for two possible scenarios. First, this breakout could be nothing more than a head fake. If that’s the case, we should see a sudden sell-off across multiple commodity sectors. But the second possibility is the decline in commodities that started back in September is now over. In that case, one commodity that traders should be looking at is natural gas. Colleague Brad Hoppmann recently did an [excellent job analyzing natural gas’ current price action](. Brad also provided some actionable insights you can use if natural gas is a sector you’d like to trade. On my end, the next step is to dig into the individual commodities that make up the CRBI to see what other opportunities might be lying in wait. Stay tuned for more… Happy trading, [Signature] Imre Gams Analyst, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](