The topping process continues. Perhaps once we roll over into an outright bear market, it would be called the Commodities Crisis? This week sellers came back with gusto and no sector was spared. Energy again led to the downside, but financials was the close second with XLF loosing 5.37% for the week. As I have repeatedly mentioned since the mid-September, I believe we are in the beginning stages of the next bear market. How it will unfold is anyone’s guess, but the fact remains that we must now change and adapt to these new market conditions.
CHART OF SPY
CHART OF IWM
STOCKS ARE HIGHLY CORRELATED
CHART OF MUB
CHART OF TLT
CHART OF $USD
CHART OF GDX
Oil is strongly bearish – it hit multi-year lows on Friday. I don’t see any signs of a bottoming action in $WTIC just yet. We could easily hit upper $20s in the near future as OPEC continues to flood the market with cheap oil.
CHART OF NATGAS
Best Regards and have another great trading week!
Alexander Berger (www.MasterChartsTrading.com)