First Gold, Silver, Maybe Sugar, and Now Soybeans?

10/24/2024

1 minute read

2024.10.24 02:57

If this is truly shaping up to be a time for commodities, especially ones undervalued, then let’s expand beyond and .

Don’t get me wrong.

I see more upside in both metals.

Remember my trifecta of inflation indicators?

Silver to gold-has to outperform-maybe starting
The breaks 100-not yet
-has to clear 22.50 cents a pound-almost

Add to that because often we have seen silver and soybeans rally together.

Here is sugar right now Sugar Futures-Daily Chart

I see a massive bull flag forming with a measured move slated for sugar to make a new 52-week high if the pennant of the flag breaks out to the upside or at around $.22.5 cents a pound.

Note how it is about to outperform on the Leadership chart.

And by the way, gold, silver, sugar and now perhaps soybeans are all rallying with higher yields and a stronger dollar.

Imagine if that changes and yields drop while the dollar softens?

Looking at the soybeans chart:

The daily chart on soybeans looks like a double bottom from August and now October.

In fact, if the November futures contract can clear the 50-DMA (blue), it also confirms that a double bottom is in place. Soybeans Futures-Daily Chart

Furthermore, the momentum indicator or Real Motion is flashing a bullish divergence as the red dots are approaching the 200-DMA while the price chart shows price far away from its 200-DMA.

Leadership is also interesting with Soybeans about to perform on par with the benchmark.

The warning I wrote about yesterday in junk bonds , sent the market lower.

However, many other voices in the room feel the same as I do-commodities are the way to go as we end this year and into the next one.