22Mar10:22 amEST

Strong Bull Markets Feature a Deep Bench

Even in the strongest of bull runs every single member of the asset class will not go up daily. Thus, we look for rotation within the given asset class in question for clues as to how broad the rally truly is. The broader the rally, typically the stronger the bull run (excepting when The Fed is blasting QE and ZIRP for years in long duration plays like tech/growth stocks).

In the current tape, commodities at-large continue to make their case for a strong bull market despite how many folks on a daily basis actively root (and bet) against the likes of crude oil continuing to rise.

And as crude and many oil stocks pull in a bit this morning for what is so far looking like a consolidation day for them, we turn to other commodities to see if capital is flowing there to avenue the overall commodities bull. 

Natural gas, below on its ETF's daily chart, has been widely castigated for years now, usually due to the ephemeral rallies leading to fresh legs down in a seemingly perpetual bear market. I, myself, have traded in and out of natty for over a decade but always made sure to keep a narrow timeframe on any trade for that exact reason. 

However, the case for a new bull market even in natty is growing from a technical perspective. Putting the fundamental and macro argument to one side, we see the technicals shaping up for a smooth uptrend as price tries to clear a tight symmetrical triangle above all daily chart moving averages. If the current consolidation resolves higher with a decisive move over $18 which gathers steam, I think we are looking at a commodity with tons of room to run higher into a surprisingly bullish time of year. 

As for other commodities and commodity stocks, the ag biosciences seem like a highly speculative but fruitful space now, with RKDA being one of the better actors today. 

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