Coxe runs the COX.UN commodity fund trading on TSX, which is $6.80, up from $4.50 low in October. He was a commodities guru at BMO until last December (when he published claims about US manipulating markets, and I suspect he got booted because they sounded conspiratorial).
The image depicts a short term bounce in the CCI Commodity Index. Quoting the article:
I’ve always put great strength on looking at Investors Business Daily Reports on their 197 stock groups in the US market ... over the years, I have found this to be one the most helpful tools in getting an idea of the way in which the market is dealing with its views of the future, as opposed to the economic numbers which basically reflect what is happening right now. When there’s a divergence between the two, quite often it turns out that the performance of the equity groups in the IBD was a better forecaster than any of the economic forecasts that were out there.
This isn’t a one hundred percenter, but its a very good indication ... This is not an extremely short-term index; this shows you that over the last 6 months which stock groups have done best, and what’s really crucial is to see how they’ve changed their ranking ... the number 1 ranked group in the whole group is metal ores, gold and silver.... We now have a total of 5 groups, which are commodity related which are ranked in the top twenty for performance over the last 6 months....
I’ve got to take you back to what happened back in the 70s, because this is almost eery as to how much this is the way things were in ‘74, ‘75, One of the statistics published about the unemployment numbers was that these were the worst unemployment numbers since 1975 in the US and Canada, they’re the worst on record. And Canada, of course, has great commodity orientation in its economy. The unemployment numbers tend to be coincident to lagging numbers, and the unemployment numbers will continue to get bad and worse.
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