{"id":188519,"date":"2023-04-13T13:26:59","date_gmt":"2023-04-13T17:26:59","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=188519"},"modified":"2024-01-24T12:14:02","modified_gmt":"2024-01-24T17:14:02","slug":"chart-advisor-crb-or-cpi","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-crb-or-cpi\/","title":{"rendered":"Chart Advisor: CRB or CPI?"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-wednesday-12th-april-2023\">Wednesday, 12th April, 2023 <\/h2>\n\n\n\n<p><strong>1\/ CRB or CPI?<\/strong><\/p>\n\n\n\n<p><strong>2\/ Soft Commodities Tell a Sticky Story<\/strong><\/p>\n\n\n\n<p><strong>3\/ Can Regional Banks Rebound?<\/strong><\/p>\n\n\n\n<p><strong>4\/ German Equities Reach New Highs<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-crb-or-cpi\">1\/ <strong>CRB or CPI?<\/strong><\/h2>\n\n\n\n<p>Inflationary pressures eased last month, evidenced by&nbsp;<a href=\"https:\/\/www.investopedia.com\/cpi-inflation-march-2023-7479604?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">today\u2019s Consumer Price Index (CPI)<\/a>. The CPI rose 0.1% in March and was up 5% year-over-year, decelerating from 6% in February.<\/p>\n\n\n\n<p>While&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/fundamentals.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">fundamentals<\/a>&nbsp;undoubtedly drive long-term trends, price movements often give valuable insight into the near-term trajectory.<\/p>\n\n\n\n<p>Here is a dual-pane chart of the CRB Commodity Index and the annual percentage change in the CPI:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/1-8-1100x561.png\" alt=\"\" class=\"wp-image-188520 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The two charts appear&nbsp;almost identical, as inflationary assets such as commodities are closely&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/correlation.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">correlated<\/a>&nbsp;with overall inflation.<\/p>\n\n\n\n<p>When you consider that markets are&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/forward-looking.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">forward looking<\/a>, with price reflecting most if not all information available to investors, it\u2019s difficult to prioritize&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/l\/laggingindicator.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">lagging economic data<\/a>.<\/p>\n\n\n\n<p>As&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/t\/technical-analyst.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">technical analysts<\/a>, we prefer tracking inflation by studying commodities rather than the CPI report. They both peaked in June of last year and have been trending steadily lower since.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-soft-commodities-tell-a-sticky-story\">2\/ <strong>Soft Commodities Tell a Sticky Story<\/strong><\/h2>\n\n\n\n<p>Despite the lackluster price action from the CRB Commodity Index and signs of easing inflation, many commodity subgroups are presenting a contrary perspective.<\/p>\n\n\n\n<p>Here is our custom&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/softcommodity.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">soft commodity<\/a>&nbsp;index, comprised of the New York \u201cC\u201d markets (cotton, coffee, and cocoa) as well as sugar futures:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/2-8-1100x561.png\" alt=\"\" class=\"wp-image-188522 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>These agricultural contracts represent one of the strongest areas of the commodity space over the trailing three months. Fresh six-month highs for this index suggest inflation might be stickier than expected.<\/p>\n\n\n\n<p>Cocoa is on the verge of breaking out of a multi-year base. Sugar is rising, with the May contract up 12% over the trailing two weeks. Even cattle futures show no signs of slowing down as they steadily trend higher.<\/p>\n\n\n\n<p>Certain commodities continue to climb despite weakness within the broader&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/a\/assetclasses.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">asset class<\/a>. As long as that\u2019s the case, the war on inflation could be far from over.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-can-regional-banks-rebound\">3\/ <strong>Can Regional Banks Rebound?<\/strong><\/h2>\n\n\n\n<p>With a handful of big banks kicking off&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/e\/earningsseason.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">earnings season<\/a>&nbsp;on Friday, all eyes will be on the regional banks following last month\u2019s string of bank failures.<\/p>\n\n\n\n<p>Investors will be closely monitoring for any commentary or numbers that might provide insight into the state of lending at these financial institutions.<\/p>\n\n\n\n<p>Here is a look at our custom Super Regional Bank Index, which features a collection of regional lenders including US Bancorp (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=USB&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">USB<\/a>), PNC Financial Services (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=PNC&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">PNC<\/a>), and M&amp;T Bank (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=MTB&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">MTB<\/a>):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/3-9-1100x546.png\" alt=\"\" class=\"wp-image-188524 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Like most regional banks, the index resolved lower from a distribution pattern in March with heavy downside follow-through.&nbsp;It has since rebounded off its 2018 lows to some extent. However, it is still&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/coiledmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">coiling<\/a>&nbsp;in what appears to be a bearish&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/continuationpattern.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">continuation pattern<\/a>.<\/p>\n\n\n\n<p>If these bank stocks and the continuation pattern in the broader index resolve lower in the direction of the underlying trend, it could spell trouble for the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/financial_sector.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">financial secto<\/a><a href=\"https:\/\/www.investopedia.com\/terms\/f\/financial_sector.asp\" target=\"_blank\" rel=\"noreferrer noopener\">r<\/a>&nbsp;and equities more broadly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-german-equities-reach-new-highs\">4\/ <strong>German Equities Reach New Highs<\/strong><\/h2>\n\n\n\n<p>European equities continue to lead the way higher as more countries reach new highs.<\/p>\n\n\n\n<p>One country index that stands out is the iShares MSCI Germany ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=EWG&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">EWG<\/a>), which is on the verge of resolving from a multi-month base as price presses against the upper bounds of its&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/range.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">range<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/4-8-1100x546.png\" alt=\"\" class=\"wp-image-188525 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Not only is price closing in on 52-week highs, but momentum has remained in a bullish regime, hitting&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/o\/overbought.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">overbought<\/a>&nbsp;levels on multiple occasions since October.<\/p>\n\n\n\n<p>Seeing this European&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bellwether.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8844949-20230412&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=041223\" target=\"_blank\" rel=\"noreferrer noopener\">bellwether<\/a>&nbsp;break out could be constructive&nbsp;for the bulls.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 12th April 2023<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-\"> <\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Inflationary pressures eased last month, evidenced by\u00a0today\u2019s Consumer Price Index (CPI). The CPI rose 0.1% in March and was up 5% year-over-year, decelerating from 6% in February.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,5,17,18,6,8,9,22,23,26,3],"tags":[15119,217,4345,2821,15120,3235,2281],"contributors-categories":[13686],"class_list":{"0":"post-188519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-europe-middle-east-africa","9":"category-futures","10":"category-macro","11":"category-north-america","12":"category-region","13":"category-securities","14":"category-stocks","15":"category-technical-analysis","16":"category-text-articles","17":"category-traders-insight","18":"tag-asc","19":"tag-cpi","20":"tag-crb-index","21":"tag-ewg","22":"tag-mtb","23":"tag-pnc","24":"tag-usb","25":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: CRB or CPI? | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"Inflationary pressures eased last month, evidenced by\u00a0today\u2019s Consumer Price Index (CPI). The CPI rose 0.1% in March and was up 5% year-over-year,...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/188519\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: CRB or CPI? | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Inflationary pressures eased last month, evidenced by\u00a0today\u2019s Consumer Price Index (CPI). 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