Commodities Holding Up, But Equity Risks Remain

Although commodities have sold off in recent trading, they have held up better than equity markets, and this we believe is constructive. That said, given how weak some equities look from a technical picture, we cannot ignore the potential impact that another round of equity weakness would have on commodities. As such, while we maintain our long position for the CRB Index in our key market views and like the look of other commodities such as corn and rice, we have set a tight stop loss for the CRB at 268.40. Furthermore, we would prefer to wait for additional confirmation

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