{"id":21705,"date":"2024-04-08T07:30:57","date_gmt":"2024-04-08T11:30:57","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21705"},"modified":"2024-04-08T07:30:57","modified_gmt":"2024-04-08T11:30:57","slug":"is-the-supercycle-already-underway","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/is-the-supercycle-already-underway\/","title":{"rendered":"Is the Supercycle Already Underway?"},"content":{"rendered":"

On Wednesday, we laid out the case for why traders should be paying closer attention to commodities<\/a>.<\/p>\n

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…<\/p>\n

To do so, we’ll be examining the Commodity Research Bureau Index (CRBI).<\/p>\n

The CRBI measures the performance of a number of different commodity sectors.<\/p>\n

Specifically, 19 commodity products make up the entire index.<\/p>\n

These 19 commodities span the energy, agricultural, and precious and industrial metals sectors.<\/p>\n

Although the CRBI is heavily weighted towards energy and agricultural products, it’s still an excellent overall gauge for how commodities are performing.<\/p>\n

And right now, the CRBI is trading at upward levels we haven’t seen since August 2022.<\/p>\n

Let’s look at a price chart of the CRBI below so you can see what I mean.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

There are two important things going on with this price chart of the CRBI.<\/p>\n

The first is how the CRBI is trading above three key moving averages (MA). They are the 20, 50, and 200-period averages.<\/p>\n

Long-time readers will know that these moving averages do a great job of showing us the short, intermediate, and long-term trends.<\/p>\n

When a market is trading above all three moving averages it’s a strong sign of bullish intent.<\/p>\n

The second important point is that on April 1, the CRBI broke through the key resistance level of 290.<\/p>\n

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%.<\/p>\n

Reclaiming this level is a major milestone for commodity bulls.<\/p>\n

The combination of the CRBI trading above its key moving averages while breaking through a prior resistance level should have us on high alert.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

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 \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Traders should be on the lookout for two possible scenarios.<\/p>\n

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.<\/p>\n

But the second possibility is the decline in commodities that started back in September is now over.<\/p>\n

In that case, one commodity that traders should be looking at is natural gas.<\/p>\n

Colleague Brad Hoppmann recently did an excellent job analyzing natural gas’ current price action<\/a>.<\/p>\n

Brad also provided some actionable insights you can use if natural gas is a sector you’d like to trade.<\/p>\n

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.<\/p>\n

Stay tuned for more…<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

On Wednesday, we laid out the case for why traders should be paying closer attention to commodities. <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21705","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21705"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21705\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21705"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21705"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21705"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21705"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}