Got Brine on My Mind

Brining, a method used centuries ago to preserve food (mainly meats) from harmful bacteria growth, becomes all the more relevant these days for Thanksgiving not for hygienic reasons but rather as a way to tenderize the tough, lean meat of the bird. Some spices, vinegars, even a little booze, among other goodies, all help to ensure that your turkey will transcend the typical dry fare we so often dread come Thanksgiving Day, provided that you do not overcook the turkey once you get it in the oven (or grill, deep fryer, etc.). 

On that note, the price action in commodities smacks me of a kind of "brining" process itself. The charts are still sound setups in most spots, and others are making tangible progress off recent lows, such as the precious metals and miners. But they are still brining rather than acting like it is go-time in the oven. That can change any day now, though.

However, I suspect we need the daily whipsaws in crude oil to calm down first, perhaps out of sympathy for most commodities if nothing else. True, natty gas is surging today. And some gold miners are outperforming. Coals and steels have been strong of late, though pausing today, while solars look to be coiling for a new leg higher as a group. 

The main bullish point for commodities and most commodity stocks, however, continues to be the ongoing Dollar correction. After a pop earlier this week, the greenback is sliding lower again. I expect a further correction into December before reevaluating and looking for another leg higher in 2023. 

As long as that roadmap plays out, commodities still have an opening to make some noise to the upside. 

I wish you and your loved one a happy, healthy, and safe Thanksgiving holiday.