iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,158 Blog Posts

Commodities Continue to Get Smashed to Pieces

Over the past month Biotechs have proven to be most resilient amongst battered asset classes. The one respite previous to June was in commodities. The great commodity super cycle was going to ruin us all, until it collapsed too. And now we have a situation whereby people are TRAPPED due to their beliefs in an asset class best reflecting depression.

Admittedly, I did not think it would happen so fast. Alas, but here we are.

With Natty down more than 12% today and oil -2.6% — this sector is getting lit up again.

Copper, Aluminum and oils are all in a bear market now, off by 20% or more. According to the Stocklabs seasonality engine — this is standard stuff. This sector does poorly after May and doesn’t come back until November.

Barring a miraculous rally in stocks, we might soon find ourselves without any venue to park cash other than cash or short stocks. The reduction of commodity prices is GOOD. Over the past month natty is -34%, wheat -21%, nickel -19%, cotton -18%, uranium -16%, copper -14%, timber -13%, corn -13%, and cocoa -7%.

This bodes well for the plebs. But it doesn’t mean the economy is coming back right away and it doesn’t mean stocks can now head higher — since the Fed is likely to continue to raise rates to ensure inflation is dead for sure.

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8 comments

  1. dontshadowbanme
    dontshadowbanme

    Didn’t you tell people to go long 3 days ago and have gone back-and-forth 2-3 times since then? Also, why did you remove the view count of your articles? Maybe the loss in readership is because you flip-flop more than a fry cook. Where is The Fly from 10 years ago who used to be a market PREDICTOR? This blog has turned into nothing more than reactionary opinions.

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    • jacked rabbit

      Bingo. He was so proud to use a big word like temperance too in a blog that went in between blogs that went chasing after commodities and then liquidating commodities…in like 5 hours.

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    • Dr. Fly

      SIR–

      I AM +52% AT RECORD HIGHS FOR YEAR. I DID NOT SAY ANYTHING THAT CAN BE REFUTED. THE TRAFFIC ICON POPS UP AFTER A MIN TRAFFIC IS ACHIEVED. I DO NOT BLOG FOR CLICKS.

      FUCK OFF YOU LIBERAL PIECE OF SHIT

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      • john galt

        Haha that’s awesome, why I come here everyday. Shut everything out but this. I’ll be 45 in oct guarantee this is me down a different path lol.

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  2. roguewave

    no worries, the recession is transitory!

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  3. purdy

    Thank you Fly for posting your market assessments in real time. Please don’t let the whiners change this.

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  4. indexjoe

    fucking troglodytes you think Fly cares about views on a webpage. I swear to the Lord on high I will lose my shit if I see anymore negative comments on this blog. Log the fuck off and pay attention.

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