Another correlated Commodities buy signal

When the Wilshire 5000 / S&P GSCI ratio pokes its head above its 200 week moving average and trades at 2.5 standard deviations above its rolling weekly mean while this ratio also registers a weekly overbought reading, it produces a signal that equities are expensive relative to commodities.

In turn, it produces a ‘relative’ buy signal in commodities, with the orange line representing the S&P GSCI Index in the chart below.

And just like the immediately preceding post….

Today, it is relative signal but not absolute.

I’ll look for absolute at a later time.

July 17, 2023

by Rob Zdravevski

Karri Asset Advisors

rob@karriasset.com.au