Mish’s Daily: First Gold, Silver, Maybe Sugar, and Now Soybeans?
Mish’s Daily: First Gold, Silver, Maybe Sugar, and Now Soybeans?
Written by Michele ‘Mish’ Schneider
If this is truly shaping up to be a time for commodities, especially ones undervalued, then let’s expand beyond gold and silver.
Don’t get me wrong.
I see more upside in both metals.
Remember my trifecta of inflation indicators?
A. Silver to gold-has to outperform-maybe starting
B. The Dollar breaks 100-not yet
C. Sugar-has to clear 22.50 cents a pound-almost
Add to that soybeans because often we have seen silver and soybeans rally together.
Here is sugar right now
I see a massive bull flag forming with a measured move slated for sugar to make a new 52-week high if the pennant of the flag breaks out to the upside or at around $.22.5 cents a pound.
Note how it is about to outperform SPY on the Leadership chart.
And by the way, gold, silver, sugar and now perhaps soybeans are all rallying with higher yields and a stronger dollar.
Imagine if that changes and yields drop while the dollar softens?
Looking at the soybeans chart:
The daily chart on soybeans looks like a double bottom from August and now October.
In fact, if the November futures contract can clear the 50-DMA (blue), it also confirms that a double bottom is in place.
Furthermore, the momentum indicator or Real Motion is flashing a bullish divergence as the red dots are approaching the 200-DMA while the price chart shows price far away from its 200-DMA.
Leadership is also interesting with Soybeans about to perform on par with the benchmark.
The warning I wrote about yesterday in junk bonds HYG, sent the market lower. However, many other voices in the room feel the same as I do-commodities are the way to go as we end this year and into the next one.
Educational purposes only, not official trading advice.
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Mish in the Media
Business First AM The new thin economy 10-23-24
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Coming Up:
October 28 Podcast with Geoff Bysshe
October 24 Live Coaching
October 28 Benzinga Pre Market
October 29-November 4 Vacation
November 6 BFM Radio Singapore
November 7 CNA Asia First
November 18 Yahoo Finance
November 21 BFM Radio Malaysia
December 5-7, 2024 Money Show Master Class
Weekly: Business First AM, stockpick.app
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) 575 support 585 resistance
Russell 2000 (IWM) 215 support 227 resistance
Dow (DIA) 420 support
Nasdaq (QQQ) 485 pivotal support 500 resistance
Regional banks (KRE) 60 pivotal
Semiconductors (SMH) 242 support 265 resistance
Transportation (IYT) 69.50 support
Biotechnology (IBB) 140 support and like better over 142
Retail (XRT) 74-75 support to hold
iShares iBoxx Hi Yd Cor Bond ETF (HYG) 79.50 nearest key support
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