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
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