On April 21st, 2020, we finally got the broader commodities, generational bear market low. Also, this low in March/April will later be seen as one of the largest inflection points the markets has ever witnessed.
This commodities bull market has arrived thanks to a historical bear market, inflationary pressures building, monetary and fiscal stimulus causing severe currency debasement, in many cases reduced supply etc. Big inflation usually starts with commodities.
The chart below is my ultimate long term roadmap chart for the most widely used broader commodities price index, the CRB. Note that it is trading at the same level it was 48 years ago, which equals a more than spectacular opportunity! And it has what I see as the best possible setup, which is price at an extreme point of “exhaustion”, starting to reverse from a so called false breakout (FBO) and major low.
I have been watching this enormous blue pattern for a long time, expecting a false breakout to the downside, marking the commodities bear market low. And now we finally have it.