Are Key Commodities Decoupling from Equities?

January 16, 2024

Mish's Daily

By Mish Schneider

After a long weekend, the market action on January 16^th held some surprises.

The Bullish Trends or gainers were the dollar and here is the surprise for some-many different commodities.

The Bearish Trends or losers were foreign currencies, long bonds and (not shown on the chart) US equity indexes.

To be fair, there were many commodities that did not perform well.

Natural gas after a spectacular run fell hard, as did gold, wheat, soybean oil and aluminum.

Two commodities though, the ones we track the most for signs of any reignition of inflation, did ok to great.

Why do we focus on silver to gold ratio and sugar futures?

As stated over the weekend, silver futures have been experiencing narrower trading ranges.

“With higher lows since October, the recent support at $22.50 an ounce, if holds, could mean this week is the week we start to see this metal shine.”

Today, silver futures had an inside day and outperformed gold which fell about $19.00 to $2,032.

Silver held $23.00 and the underlying support level.

All things considered; gold also held near-term support at $2029.

Yet we are yet to see silver outperform gold, so we watch.

Sugar cleared 22 cents a pound closing at 22.52.

Coffee and cocoa rallied as well. So, it was a big day for the softs.

Back to the notion that that today could be the start of the decoupling.

We need to see more.

But, we are paying attention.

Click the link below to get your free copy of the Outlook 2024 and stay in the loop!
-

Click here to get your free copy!

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

Come to the Money Show to hear me and many other great folks speak.

Traders World Fintech Awards
-

Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!

"I grew my money tree and so can you!"- Mish Schneider

-
Mish in the Media - All clips here

CMC Markets Part 3 Gold outlook 2024; the year of the heavy metals? 01-03-24

CMC Markets Part 2 2024 Outlook on the major level to watch in the S&P 500 to assess next big trend. 01-03-24

CMC Markets Part 1 Mish gives you a thorough outlook on which areas to invest in for 2024 in just four and half minutes 01-12-24

CMC Markets Mish continues with the plan for trading on CPI today. Oil, NatGas, Gold and Silver all have very clear levels and momentum 01-11-24

CMC Markets Mish continues with her analysis on gold, oil and gas, only this time adds the dollar/yen currency pair and her outlook on the dollar longer term 01-10-24

Biz First AM Mish covers the January reset and why she still likes COTY, TJ Maxx and the vanity trades 01-09-23

CMC Markets Mish covers oil, gold, natural gas, silver and sugar and teaches you how to use charts to determine short term trading strategies, 01-08-24

Real Vision Daily Briefing Mish and Maggie discuss inflation (given the wage component in the payroll report) and Bitcoin (given the looming deadline for ETF news), SPY – market outlook. Why small caps are important, Emerging markets - VNM Greece, Watching China 01-05-24

Business First AM Mish covers war, energy, food, and a pick of the day. 01-03-24

Final Bar with Dave Keller Stockcharts Small Caps, Retail and Junk, Why all 3 matter this year a lot! 01-02-24

BNN Bloomberg What is a Commodity SuperCycle Really? Mish goes over one interesting chart plus places to invest this year 01-02-24

Fox-Making Money with Charles Payne Cheryl Casone Hosting Mish covers volatile bitcoin and why EVs may not be such a great place to invest in right now 01-02-24

Singapore Breakfast Bites Mish talks about themes for 2024 to look for-and tells you where to focus, what to buy or avoid depending on economic and market conditions December 28, 2023

Charting Forward with Stockcharts and Dave Keller-Mish sits down with 2 other market experts to help you prepare for 2024 with predictions, picks, and technical analysis. December 28, 2023

Coming Up:

January 17 Stockcharts on January Calendar Ranges

January 22 Your Daily Five Stockcharts

January 24 Yahoo Finance

January 25 Live Coaching

Weekly: Business First AM, CMC Markets

ETF Summary

S&P 500 (SPY) 480 all-time highs 460 underlying support

Russell 2000 (IWM) 195 pivotal 180 major support

Dow (DIA) Needs to hold 370

Nasdaq (QQQ) 408 now the immediate pivotal number with 405 support

Regional banks (KRE) Failed 50 but not by too much at this point