Sunday, December 12, 2004

Chart of the Week

Morgan Stanley Commodity Related Index(CRX)

Bottom Line: The CRX has risen 28.1% over the last 12 months. However, I expect these stocks to underperform over the intermediate-term. An exodus by momentum investors, lower commodity prices, a stabilizing dollar, greater supply and slackening demand from Asia/Europe should provide the catalysts. I expect the CRX to test its 200-day moving-average over the coming months.

No comments: