Saturday, February 12, 2011

Doolittle Warns on Food Commodity Price Break

In her most recent report, technical analyst Abigail Doolittle of Peak Theories writes:
- The long-term charts of the grains and oilseeds clearly show a bubble back in 2008 while it seems something similar may be building today.

- If this turns out to be true, the popping of such a bubble points to a coming collapse in price and nearly across the board.

- I write “nearly” because there appears to be one exception and that’s rice.
One shouldn't go overboard when looking at charts, but they can be valuable at helping understand short-term supply and demand trends and Doolittle is one of the best chart readers I have ever come across.

She is currently negative on the stock market, bullish on gold, negative on silver and this new bearish on food commodities. Money supply has appeared to slow down to under 5% in recent weeks, is the technical weakness she is seeing the first signs of the impact of slowing money growth?

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