Commodity Bulls Having a Rocky Month
The raw-commodity sector of the market was rolling along with a good head of steam heading into the month of March. At the start of the year, the Continuous Commodity Index produced a solid price uptrend on the daily chart, from the December low. The CCI is a basket of 17 major raw-commodity futures market prices rolled into one composite index price. It's an excellent barometer of the overall health of the raw-commodity sector and of commodity price inflationary pressures.
However, the wheels have come off the bullish commodity market buggy in early March, partly because of disappointment from bullish commodity traders. The Federal Reserve, after its recent FOMC meeting and testimony by Chairman Ben Bernanke before Congress, did not hint at further monetary policy stimulus measures. Easier monetary policies by central banks are generally bullish for the commodity markets because of the tendency for easy money to ignite inflationary pressures....280 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.