Author: Kevin Klombies

Let’s get right to it today. We continue to look for crude oil futures prices to resolve back down to around the 85 level. Below is a comparison between crude oil futures and 2 times the price of Suncor (SU) minus the...

The issue, we suppose, is whether the markets can handle a decline in commodity prices and a rally in the U.S. dollar without imploding in a manner similar to 2008. In other words… has the trend run far enough and long...

When the price of a market, security, or asset breaks to all-time highs a subsequent period of consolidation is to be expected. There will be times, of course, when prices will simply continue to rise but, in general, the...

The further we get away- in terms of time- from the last equity bear market the more confident investors become. Still… when the markets have collapsed in recent memory it is natural to feel some level of anxiety each...

Market trends are always easier to understand and dissect in hind sight. Give us a couple of years and we will be able to explain exactly what is going in with some amount of clarity. In real time, of course, things are seldom...

We often use quotes from news articles to help make our point but rarely do so to the extent that we are doing today. Just below is a chart of the S&P 500 Index and U.S. 30-year T-Bond futures from 1987. The argument has...

Having forecast 23 out of the last… zero… tops for gold we are going to prove once again that our learning curve is, in fact, a flat line. However we are going to wait until today’s fifth page before pulling...

Strange things can happen within the various cyclical sectors once copper has reached a relative strength peak.  It may be that copper pushes on to higher highs in due course but given that the ratio between copper and the...

Alcoa traditionally leads off the quarterly earnings parade but from our perspective the real party starts today as large cap names such as IBM, Intel, Johnson and Johnson, Goldman Sachs, etc. report how their business fared...

The problem with being a contrarian is that it only works at the turns. Through a trend or a cycle it makes perfect sense to be trading in the same direction as the thundering herd even if you absolutely know that when your...