Commodities all follow cycles of consolidation, boom, and bust. When looking at them as a whole it can be hard to tell when tops occur. But when you start to break down individual markets you will notice that many of our commodities like Sugar, Wheat, Cotton and the like have already topped out in Feb of this year while others like gold silver and oil are still printing higher highs. This divergence is telling you that the commodity markets are getting tired. More upside may be coming in some of the tardiest sectors but at one point in the future all will start to correct. This is the bust cycle and it is typically strong in commodities. I do not expect it to be any different this time.
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