A correlated buy signal for commodities

I pre-empted this moment a couple weeks ago in this post.

Oversold Inflation Rates is a signal to buy Commodities

Today, it is relative signal but not absolute.

I’ll look for absolute at a later time.

When U.S. Inflation (blue) trades below its 50 month moving average, trades 2.5 standard deviations below its rolling monthly mean and registers an  oversold RSI….it seems to coincide with a Buy signal for commodities (S&P GSCI in orange).

I’ve circled the 8 occurrences over the past 35 years.

July 17, 2023

by Rob Zdravevski

rob@karriasset.com.au