Moving back into commodities

From an asset allocation point of view, one day there is going to be an important event which will signal it’s time to rotate into commodities, according to Riccardo Ronco, Head of Technical Analysis at Aviate Global: A breakout of the downwards trendline in the commodity / S&P 500 ratio. The trend has been strong since 2008 and when the breakout eventually occurs, Ronco says a long CCI index / short SPY could be an interesting trade.

See Chart.