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Friday, May 5, 2017
Bloomberg Commodity Index
Bloomberg Commodity Index lost all its gains since Trump's ignited Reflation theme started in November 2016. There is growing concern whether Trump's pro growth reflation story has peaked. Iron ore price has dropped 32% from the peak reached in February. Rio Tinto is down 16% and Crude has fallen from a high of $54 to $45 this year. The Commodity Index has been a leading indicator of global economic growth and the stock market. If history is any indication, a correction in the stock market could be on the cards. The Bloomberg Commodity Index is sitting on its major support. A break below 82 will be bearish.