Market patterns

It looks like an ugly day. But the patterns remain the same.

*** Stocks weak.
*** Commodities weak.
*** Agriculturals weak.
*** Gold weak.
*** Bonds firm.

I like to believe that gold, agriculturals, and all other commodities behave exactly in the same way. And their near-term trend depends on the strength or weakness of the business cycle. The long-term trend is a function of real interest rates.

Another pattern that seems consistent is that bonds act much better than the market when stocks are weak.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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