CRB Revisited

I thought it a good time to throw the chart of the CRB out there again. It has been a little over a week since the Fed decided to trash the dollar by doing a “surprise” 50 bips cut in the targeted fed funds rate. The predictable result is a surge to the upside in commodity prices priced in dollars. Here is a look at the CRB index, which was already surging and probably did not need the help. Note that it has retraced more than 62% of the entire drop from the high in May of 2006 to the recent low in January of 2007 and is very probably headed higher in the short term.

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