Whilst equities continue to battle to new historic highs, commodities remain weak. In particular, Oil and Copper - usually good indicators of the broader economy, are very low relative to equities. The CRB/Sp'500 disparity continues to grow.
WTIC Oil, monthly'2
It has been another difficult week for the equity bears (not that I've been shorting the indexes)...so I'll keep this post short.
On one side, weak Oil/Copper prices are normally a bearish sign, but...it has to be said...on the flip side..lower prices help to increase profit margins for the manufacturers, never mind the general retail economy.
With the Fed kicking up the equity market via continued QE, it would seem we'll see a rare instance where Oil and Copper fall (or at least flat line) but with equities continuing to push upward.
Of course..it won't last forever. I remain looking for a key equity intermediate top in spring 2014.
Goodnight from London
next post: late Saturday, on the US weekly indexes.