FURTHER NOTES ON COMMODITIES

We just wanted to reiterate our continued constant call on just about everything commodity as they go deeper into their bear phase. This includes energy, oil & gas, gold, silver, steel, copper, aluminum, fertilizers and anything you can drop on your toes and it hurts. This started with energy/oil&gas on January 30th break of support. After that, little by little, piece by piece, all the other areas rolled over and went lower. One never knows how bad things get but take a gander of the 3 most popular energy etfs in OIH, XLE and XOP. Yikes. Notice the break on January 30th and notice the classic drift into the declining 50 day average which failed on April 12th. Since, nothing but a cliff dive. We would continue to avoid these areas for now. Bounces can happen at any time as they are now very oversold but for now, they are just bounces.