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Takeaway: In case you hadn't noticed, commodities are in a bear market.

The crash continues...

Crash! Boom! Bang! [Commodity Crash Continues] - z crash

In a note to subscribers this morning, Hedgeye CEO Keith McCullough (once again) highlighted the developing commodity bear market:

"The crash in Copper (-1.8% this am to $2.02) continues and Oil is down another -3%, testing $40 WTI (again) – hardly the green shoots a supply/demand bull is looking for, but I’m probably being too bearish looking at fact vs fiction."

It's no coincidence that the Copper and Oil price crash coincided during a week of U.S. dollar strength. The U.S. dollar index was up +0.6%, and +10.3% YTD, after ECB President Mario Draghi said, "We will do what we must to raise inflation as quickly as possible." That sent the Euro -1.2% on the week to -12% YTD.

This strong dollar event is just as deflationary a force as it was during the summer.

Consequently, things like Copper have plummeted. Copper is off 28% year-to-date.

Crash! Boom! Bang! [Commodity Crash Continues] - copper 1

It's happening all throughout commodities. The CRB index is down 20% year to date.

Crash! Boom! Bang! [Commodity Crash Continues] - 11.23.15 EL chart

Here is a look at some other commodities:

  • Wheat prices dropped another -1.6% on the week, taking it back into crash mode at -20.8% YTD 
  • Nickel deflated another -5.1% week-over-week, taking its crash to -41.5% YTD
  • Oil (WTI) continued to crash, closing down another -1.2% week-over-week at -30.9% YTD

***In related news, Saudi Arabia announced earlier this morning that it is ready to work with other countries to stabilize the price of Oil.

Crash! Boom! Bang! [Commodity Crash Continues] - Oil cartoon 11.20.2015