Bright Green on the Dollar Means Dim Commodities

At least for now, the continued strength in the U.S. Dollar is blunting any semblance of upside action in most commodities. 

For a while now, we have noted with Members that sugar and cocoa were two stalwarts in entire commodity complex. But natural gas and precious metals and miners, along with crude, continue to be disappointing just when it looks like they are on the cusp of follow-through higher. 

With no such trigger, however, it has been tough to get behind any type of bottoming thesis as long as the strong Dollar appears to be inflicting its deflationary wrath. 

Of course, we have the Fed Minutes tomorrow and the big meeting next month. Still, I am focused much more on the long Dollar than fishing in the troubled commodity waters until the tide changes with more staying power.

On the updated monthly Dollar ETF chart, below, note the bull flag breakout very much a threat for higher prices in the coming months.