Oil (WTIC) – We are stuck in a trading range between approximately $68 and $78 a barrel while economic trends resolve themselves. As an oil bull this looks like a base but a long-term base pattern which will lead us higher at some point in the future.

At this point in time oil equities are more interesting than Oil ETF’s due to their strong cash positions and high dividend yields. The dividend yields give the stocks a nice cushion in the event of a downturn in the market.

Natural Gas – Seasonal pattern are in effect here with Natural Gas trading lower in the summer months as inventories are replenished ahead of the winter season when stocks get drawn down. The chart may look ugly but it is seasonal ugly. Still not a time to go long.

Copper – Copper is trading near the top of its historical range which should give investors pause. Seasonal effects may begin to take effect as the 8000 level (~400 on the chart) is a major resistance level at which point the demand dynamic changes considerably irrespective of supply.

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