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Commodities Fall Out of Lock Step

By Jim Wyckoff

About this article:
Something significant has occurred in the commodity futures market sector this week: There has been a decoupling, of sorts. By that I mean the key "outside markets" -- crude oil, the U.S. dollar and the U.S. stock indices -- that have had such a powerful influence over other markets' price action have this week become less influential. In recent months, many commodity markets' own supply-and-demand fundamentals took a back seat to what the key outside markets were doing on a particular trading day. This was evident on a regular basis, as most markets were in sync -- if the U.S. dollar was weaker, then crude oil futures prices were higher and so were most of the other commodity futures markets. And if the U.S. stock indices were higher, then crude oil prices were usually higher. Conversely, when the stock market was lower, U.S. T-bonds and T-notes...

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