Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
These three assets are "very sensitive" when it comes to the growth/inflation story. Each of them has been making a series of lower highs since May of 2011. Now they are breaking support lines of rising wedges and pennant patterns.
CNBC featured an article this week titled "Get Ready to Play the Coming Deflation Trade ".
I'm not sure this is new news, with several commodities (Copper, CRB, CRX, Gold, Silver, etc.) and the Shanghai Composite all down over 30%+ in the past 18 months. It does reflect that several assets that often tell the truth about growth (or lack thereof) are suggesting some type of slowdown could be working its way into the global community in the months ahead.
The key to the growth story is this: Will these growth indicators, which are down, stop falling? Keep a close eye on them because the stock market in time could be impacted by the message.
For information about Kimble Charting Solutions, send an email to email@example.com.