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July 10, 2009 / Jeb

DBB Base Metals Head and Shoulders Looks Bearish,TLT and FXY Look Strong

DBB

Another chart that is warning me to be careful on the commodity rally.  Huge selling of base metals has come into play.  A head and shoulders formation has developed.  This is telling me to stay away from commodities at the moment.  Treasuries and the yen may be heading into more gains as high unemployment, low consumer confidence, deteriorating real estate market and financial crisis issues remain in the headlines.

I am remaining short on fiancials and equities.  Long on the treasuries and the yen.  Be careful of the deflation verse inflation debate. It will be continuing and one can make profit both ways.

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