Investment Markets

Stock market, bonds, currencies and commodities. What's happening and how they work.

Coal and sugar markets getting worse

Most commodity markets have been in poor condition but coal and sugar markets are getting worse.

The point of highlighting the bearish condition in commodities is the implication for retail investors. Many investors will assume, at some point, a market has bottomed out. When that decision is made, some buying starts and possibly some more as the price fails on the belief that it's an even better deal. But coal and sugar market E.T.F.'s are a real time case study into the financial markets.

Price charts below show the price trend for coal and sugar. Five year charts are farther down the page but notice the action from late May 2015 (the first chart below). It is marked with a red arrow. This session is a pivotal breakdown in the market's attempt to bottom out. The decline from the session prior to $11.98/share is over 10%. This may not seem like a large loss, but the decline has several bearish characteristics. With the market down 75% from the 2011 peak it only punctuates the severe ongoing weakness in the market. Investors attempting to profit from a bounce have suffered and many may have suffered badly.

The Good News

Addressing a trend that is several years long may seem late or pointless, but understanding the extreme nature of the financial markets can be profound for decisions investors make with their hard earned money. Avoid weak markets and securities.

Coal (KOL): Five Years

Sugar (SGG): Five Years

Tin (JJT): Five Years

Investor Boot Camp Online provides market analysis with buy and sell indications for all markets. Investors who manage their own portfolio, through a discont broker, use the guidance for improving performance.

Stocks reverse, fall hard

The stock market lost a modest gain, selling off hard into the close as the Russell 2000 fell 1.17%, the Nasdaq .63% and the TSX .42%. Volume was higher and well above average. The reversal from a new high in heavy volume is a bearish reversal and frequently a sign of a top. Many stocks including GWPH also staged a bearish reversal but most leading stocks remain in good condition including AAPL which hit a new high.

Early session a tweet by us on Twitter, suggested a decline in North American markets, sparked by issues with Greece's bankruptcy, was a buy opportunity. This may be the reason for today's sharp decline, but assuming anything is speculative and execution requires selling first to take advantage of any bounce.

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Commentary including ideas, historical and other market indications are not investment advice. Statistics and other data may be from other sources and may be inaccurate or incomplete. See Full Disclaimer.

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