Commodities on a Buy Signal
The Goldman Sachs Commodity Index ETF (GSG) generated a buy signal on the point and figure charts today:
The preliminary price target is 42. This fits into my theme that commodities are in a secular bull market and the big decline of the last six months was just a correction. It is interesting that commodities have been able to rally over the last few days even as the dollar rose. That divergence can’t last long though so this could be a false buy signal. Nonetheless, today’s action means I’ll be adding to our positions.
Disclosure: Alhambra Investment Management and our clients own GSG.
- January 6th
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