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Commodities to remain weak

Commodities prices (shown by the Reuters/Jefferies CRB index) continue to show weakness since market bottomed in March of 2009. Commodities was also showing weakness in the last rally from February to April when it failed to reach a new high. This is Good News indeed because low commodity/energy prices means lower costs to companies and more profits at the end of the day.

The lower pane of the chart below shows the relative price between the CRB and SP500. A decline curve shows continue weakness in the CRB relative to the SP500. I would stay away from commodities for the time being.

CRB Commodities Index

Disclosure: X,