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More Commentary on Commodities, Part 3

Here is a commentary from Alan Farley, a well known technical investor relative to the commodity correction…

Alan Farley
Calling Tops and Bottoms
8/5/2008 11:29 AM EDT

First we had massive bottom calling in broad equities. Now we have massive top calling in the commodities. My recommendation: take a deep breath and look at those markets in a weekly or monthly view. All you will see are pullbacks in long-term bull trends.

Commodity cycles are long, running 15-20 years at a clip. By my estimation, we’re in year 4 or 5 of this one. That doesn’t mean these contracts and equities can’t move lower into year-end. It does mean they’ll be hitting new highs, if not this year, then in 2009.

Position: Quoting my Monday column: “I find it disingenuous that the same folks telling us that market-timing doesn’t work are frantically calling bottom after bottom. Meanwhile, technicians just sit back, preaching patience and risk aversion. A case of role reversal, don’t you think?”