Below we highlight our trading range charts for ten major commodities. For each chart, the green shading represents between two standard deviations above and below the commodity's 50-day moving average. Moves above or below the green zone are considered overbought or oversold.

As you'll see, prices have come down across the board in recent days. Gold, silver, copper, corn, wheat, and coffee are all trading at extreme oversold territory. For the metals, many are trading at their most oversold levels in at least a year. Long-term uptrends have now been broken for gold, silver, copper, and coffee. Energy has held up relatively well recently, with oil and natural gas both trading right in the middle of their trading ranges. Orange juice is the only commodity that really hasn't struggled a bit.

It has been an exciting few weeks has it not? One could be forgiven for thinking that yesterday's trading was simply a respite, reprieve; a breather, before further market calamities.

We have taken quite a few calls from clients asking "where to now?" with one or to even asking to reduce their holdings for a time.

The big three commodities, gold, silver and crude, have been suffering a bit lately. We can see that the big commodity ETFs (like DBC, DJP, GSG) are experiencing similar downturns.

Interestingly, the spot prices of commodities are trading at multi-week highs, as can be seen from our propriety index constructed from the spot price of commodities used in quantity across many industries (polyethylene or plastics, coal, wool, pulp, & rubber). The commodities measured here are not so susceptible to speculative activities.We have long felt that the futures market for commodities is heavily manipulated and hides the true behaviour of the commodity market in general.

Here we present firstly our commodity index, then the ETF DBC for your comparison. [click to enlarge]