Inflationary Surges in the past 50 years

countryBoy641

countryBoy641

Dr. Copper doing its thing.
New all time highs this past week.
High water mark $5.20/pound,
previous high $5.04/pound
Closing still strong $4.75/pound
Surprising the home builders are still strong.

Crude Oil watching from the dugout,
maybe get in the game soon.


$HG vs $WTIC-50 yeard.jpg



Daily, "Bull-Pennants-R-Us"
Seems it is terified to do the "left hand" cross.
Too much manipulation from the FED//White House.


$HG vs $WTIC-50 daily.jpg
 
All commodities having their fun ...with copper at historical highs this will create much inflationary pressure moving forward. Don't be foolish to think rates can start dropping. Markets at historical highs, unemployment still at lows and earnings are beating left and right. Absolutely zero reason for rates to be cut while commodities start to gain extreme momentum to the upside.
 
S2007S said:
. . . and earnings are beating left and right. Absolutely zero reason for rates to be cut while commodities start to gain extreme momentum to the upside.
More...

A valid observation.
Also noteworthy, as company prices rise,
earning rise as well, providing the
Illusion of a healthy/growing economy.

A "little bit" of inflation is a good thing,
until it stops being a good thing.

"He who supps with the devil better have a long spoon".
 
If you look at the "softs"software, only Cotton is a buy, all the others, Cotton, Coffee, Sugar coming off highs, OJ making all time highs to sell.

Metals except Platinum, I keep selling, eventually reversion to mean.

Transportation stocks going down, JBHT go any lower will be freefall.
 
Handle123 said:
If you look at the "softs"software, only Cotton is a buy, all the others, Cotton, Coffee, Sugar coming off highs, OJ making all time highs to sell.

Metals except Platinum, I keep selling, eventually reversion to mean.

Transportation stocks going down, JBHT go any lower will be freefall.
More...


Been paying very close attention to transports since they are the leading indicators of economic growth and let's just say they are very much under performing the overall markets.

If the transports give way....look out below...you cannot have a continued market rally without participation of the transports.
 
S2007S said:
Been paying very close attention to transports since they are the leading indicators of economic growth and let's just say they are very much under performing the overall markets.

If the transports give way....look out below...you cannot have a continued market rally without participation of the transports.
More...

Yes, I agree with you.
Trannies are weak, looking to roll over.

$tran_15 years.jpg


But it is difficult to extrapolate (make money) on that.
The last inflationary period in the U.S. was 1966-1980.
Paul Volker at the FED.
Vietnam, LBJ, Guns and Butter, much smaller Government and National Debt.
History does not repeat, but rhymes

$tran_1966_1980.jpg
 
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Handle123 said:
If you look at the "softs"software, only Cotton is a buy, all the others, Cotton, Coffee, Sugar coming off highs, OJ making all time highs to sell.

Metals except Platinum, I keep selling, eventually reversion to mean.

Transportation stocks going down, JBHT go any lower will be freefall.
More...

Yes, you are making very good, valid points.
But as a swing trader or investor,
it is important to be aware of the environment,
the backdrop for where and when this "card game" is being played.
Rising prices in Gold and Silver get the attention of guys like us,
looking to make some money with our saved up nickels and dimes.
And we are a very small subset of the general population.

But when it comes to food commodities, every adult knows about rising prices.
Although "capping" food-commodity prices can have disastrous consequences into the future,
many powerful people don't care about consequences into the future.
If they did care, we would NOT have $34Trillion in General Obligation (GO) national debt.
 
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