The chart of WTI crude oil is very interesting to we bottom feeders.  WTIC is on the verge of confirming a new uptrend and in fact, the break above the moving averages (green box) has held for three days.  This is bullish.  Next resistance levels are noted. 

Interestingly, the XOI oil index is not leading and could be considered a bearish divergence.  Either that or the oil stocks are in the process of holding support for a double bottom.  Despite the bearish divergence, energy stocks could prove to be leaders at whatever point the broad market bottoms.  NFTRH is only interested in relative strength leaders at whatever point the time is right to become temporarily bullish. 

Copper has bottomed and is attempting to hold a break above resistance.  Again, this is a very delectable chart to the bottom feeder.  These bullish sentinels argue that there may be life yet in an inflationary world, although right now we cannot read anything more into these bottoms than temporary relief.

In what is likely to one day degenerate into a global war for resources and capital, the time has come to begin watching these commodities closely, now that the former commodity bull herd is obsessed with deflation.  This is how the markets work my friends.

Gary Tanashian

Biiwii.com

Biiwii.blogspot.com

-- Posted Tuesday, 10 March 2009 | Digg This Article