Saturday, November 27, 2010

Koolaid losing its luster?

Just posting to suggest to keep an eye on sugar.  With the past few weeks' action predicated on the flood of cheap money and inflation, looking at commodities like sugar seems appropriate.

On the daily chart we see a pattern resembling the February decline.  Price action slammed through the 34 day and has been bumping up against the bottom of the 34 and the middle of the daily bands.  The February action is a perfect example of rallying into a declining MA cross, then repelling from the cross.  The current action could suggest biding time before continuing a sell-off in a similar fashion.

The weekly sugar chart on the other hand suggests sugar could be basing on support preparing for an extended 5th wave up.  I'm not really going to suggest it resolves one way or another and definitely not suggesting a certain correlation to the market; I have some opinions, but really just want to draw your attention to it.