Global Resource Stocks: Is A Correction Underway?

[HenryTo]

Latest daily commentary from the Bank Credit Analyst:

http://www.bankcreditanalyst.com/public/story.asp?pre=PRE-20050315.GIF

I wouldn't take everything they say as gophel but they have been pretty good on some calls in the past. Even if they are not 100% accurate (who is?), their analyses are mostly excellent ususally get you thinking.

[HenryTo]

Prior to the late 2004 highs, the CRB made its high in early April of 2004, at a level of around 285 (which pierced its last high of around 275 which was made in 1988!). The late 2004 highs saw the CRB Index peaking at around the 290 to 292 level.

The CRB Index than subsequently corrected and consolidated a little bit and then proceeded to take off starting in February at the 280 level. Today, it closed at a new high of 316.75, a rise over 13% in six weeks.

It is difficult to envision a scenario where there won't be any inflation or bearish repercussions for the stock market.

Even Southwest Airlines has increased its airfare prices to offset a rise in oil prices: http://www.forbes.com/markets/2005/03/14/0314automarketscan09.html?partner=yahoo&referrer=

So has JetBlue as well: http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7BEBCAB0F7%2DD841%2D49AF%2D9993%2D3C30E9660D4B%7D

[crash]

... after all this heavy lifting.

http://www.schwab.wallst.com/charts/mutualfunds/10kBasic.asp?fund=PSPFX&user_id=test

I've enjoyed this diversification for my junior miners, recently. CRB is breaking to new highs:

http://quotes.ino.com/chart/history.gif?s=NYBOT_CRY0&t=l&w=15&a=50&v=d12

Thanks,
Bob
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Elliott waves are counted within Bollinger Bands, MACD & Stochastics patterns aid the count, divergence shows potential for reversal, weekly PSAR provides a trailing stop.