This Index Just Hit Its Highest Level In 6 Years (And It’s Not the S&P 500)

September 27, 2021  |  Michael Reilly

Mike Reilly Director of RiskManagement, Rowe Wealth ManagementThe CRB Commodities index consists of 19 commodities that include everything from Metals to Oil and from Crops to Livestock.

Any savvy investors looking for potentially profitable trades outside of the mainstream will want to check out this chart of the CRB…

Because after recovering from its COVID lows and breaking above an important resistance level at the 2016 lows, the CRB saw a near parabolic move before once again running into resistance. 

And just like it had in 2020, after testing resistance a few times, the CRB index is once again showing signs of a breakout…

We’re going to want to keep a sharp eye on these current levels. 

If the CRB continues higher from here, its next breather may not come until it hits its 2014 highs… 

That can mean many profitable trades coming out of the Commodity space in the coming weeks and months.

We’ve already seen strength quietly coming out of Commodities, as the CRB broke above its down trendline (the red line below) for the first time since 2014.

The fact that this asset class was able to break above a downtrend line and is now at levels not reached in over a half-decade, speaks to the strength coming out of the #2 ranked asset class.

And if that’s not enough to get your attention, over the past month RYE, an equally weighted energy ETF, has crushed the performance of the S&P 500 – outgaining the broad market index by over 14%

So while the S&P 500 index lost ground between August 31and today with a -1.72% return, RYE has shot up 12.42%.

Just this past week, RYE was one of the biggest weekly gainers jumping 4.24%. 

It was joined by several other energy funds you may never have heard of, but should put on your radar: Oil Refiners (CRAK) and Unconventional Oil & Gas (FRAK).

And don’t forget about FCG, a Natural Gas ETF. 

Take a look at the performance chart below.

These are some eye-popping returns. But don’t think you’ve missed the party… 

Even though you hear nothing coming from the major financial networks about Commodities… 

It looks like they’re just getting rolling, and if that holds true, there will be plenty of opportunities for investors. 

So pay attention and be selective…

A good way for investors to choose what to buy is to make a list and the best place to shop from that list? Check out the top holdings of some of the ETFs we’ve talked about above.

Until next week, happy hunting and invest wisely!

 

 

PS: We totally get it – following all the charts and trying to make sense of the markets can be time-consuming and frustrating. To make it all easier, give us a call. We’re opening our doors to new investors who have portfolios valued over $500,000. If you’d like to schedule a free 1-hour consultation to review your portfolio, click here.

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