Are Commodities About to Hijack Goldilocks?

In this report I cover the early market action from London on Tuesday, May 22nd, 2018. I look briefly at precious metals, the stock market, the dollar and interest rates. Today I also focus on the charts and technical analysis as I look at various charts raging from the gold/silver ratio to the CRB Index.

The gold/silver ratio chart is pointing to a possible general move higher in the precious metals at this ratio actually topped earlier this year and now with silver out performing gold it has started to drop. Historically precious metals bull markets have corresponded with a drop in the ratio.

The other very interesting chart I looked at is that of the CRB (commodity) index and I note that we are actually breaking out technically as WTI crude oil has a great deal of momentum at the moment as it has made a sustained break above the 2016 high of $63.

My conclusion is that we could be on the cusp of a major move higher in the commodities market and also interest rates and that this environment could put a major break on the overall economy and the so called "goldilocks economy' of strong growth and moderate price pressures.