CRB Index – The short-term chart is at a critical juncture. A break above 280 would mean a move to test the yearly high of 294 and a breakout from its technical pattern and base. This would signal a move higher for commodities in general and likely fuel speculation about building inflationary pressures in the system.

Crude Oil (WTIC) – Still moving sideways in this base pattern but having problems with the 200 day moving average as a resistance level. Crude oil has been trading in a volatile range this year being led by news flow concerning economic growth. A breakout above the 200 day moving average would signal a move up to the $82 level. At this point in time major oil producers with solid dividend yields provide a better play than Crude Oil itself.

Natural Gas – We have moved up off the $3.70 level as seasonal effects begin to take hold. There is still some room to run before we hit the moving averages so natural gas looks to be a decent trade at these levels although natural gas stocks with solid dividend yields are a much better play than the commodity itself. Stocks are still strong in the US and with Marcellus Shale production coming online it appears any move up will be limited.

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