OIL vs GAS

Following a suggestion of a good friend, here we can see the OIL / NATURAL GAS ratio.
It interesting to notice the bearish divergences in this ratio (full stochastics), and therefore, we can expect a possible rebound in the index. This mean that, in the near future, the probability of Natural Gas outperforming OIL is very high.
In addition, I suggest to look the long term situation of the Natural gas (here), which is struggling with a support @ USD 2.71.
Time for a reversal in Natural Gas? A big drop coming in Oil?. As it always happen, time will tell.

DBC: watch-list

I find interesting to take a close look at what DBC is doing.

DBC seeks to reflect the performance of the Deutsche Bank Liquid Commodity index. The fund will pursue its investment objective by investing in a portfolio of exchange-traded futures on the commodities comprising the index, or the index commodities. The index commodities are light, sweet crude oil, heating oil, aluminum, gold, corn and wheat. The index is composed of notional amounts of each of the index commodities. The notional amounts of each index commodity are broadly in proportion to historical levels of the world’s production and supply.

Weekly chart:


Daily Chart:

Intraday chart:

DBC vs Gold and other commodities:


DBC vs Gold and other commodities:




Interesting related readings:

Embrace Deflation - It's The Cure, Not The Problem

Commodities' Blame Game

A New Moving Average System for ETF Portfolios

Hyperinflation or deflation

Bespoke's Commodity Snapshot (7/8/09)

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