While the broader indices are fading, there’s still a strong trend underway in commodities.

Taking a look at the below WEEKLY chart of the Morgan Stanley Commodity Related Equity Index (CRX), there’s something fairly interesting happening… While the broader indices have been struggling, the uptrend in commodities are still intact.

What you can’t see is a chart of the Reuters/Jefferies Commodities Index (CRB), which is trading at a 52-week high. What it means is that commodity-related equities -- might not be far behind.

Over the near-term, investors who understand cyclical-sector rotation and look for buy-side markets, might find exactly such within commodity-related equities.

Exit is everything.

Mark Whistler

2/12/08