Although gold and silver got hit quite hard today, the other members of the CRB Commodities Index faired poorly as well with the complex being down 4.1%. However, as noted in the first chart, the CRB Index has bounced sharply from the 50 dma since last August. We will see if it holds this time as it is now quite close again. If it does hold, then we are just witnessing a minor correction as we continue our upward march.

In Table 1 below, we can actually compare how the 19 commodities that make-up the index have performed in 2008. Although the shares may not reflect it but, impressively, silver has been the 2nd best performer in the index. Overall, the CRB Index is up 8.3% for the year while the S&P 500 Index is down 8.6%. Although all commodities have had a rough week, commodities is still the place to be until the current trends are violated.

On watch - VHF

Chart 1: CRB Index 1 Year

Table 1: CRB Index Member Comparison