Question of the Day: What is the Commodities Sector Seeing that the Stock Market Doesn't?

Please consider a series of chart my friend "BC" put together of various indices vs. the Morgan Stanley Commodity Related Equity Index ($CRX).

$SPX vs. $CRX

click on any chart for a sharper image

$CYC vs. $CRX



$TRAN vs. $CRX



$DJUSRR vs. $CRX



What is the Commodities Sector Seeing that the Stock Market Doesn't?

The answer from my friend Pater Tenebrarum who also saw these charts is "the coming economic bust in China - which has likely already begun."

That idea is in-line with several of my recent posts ...

• Hidden Losses and Little Reform; China May Be Slowing More Than You Think
 
• World Bank Warns of Economic Crisis in China; Only 3% Growth for Decade Says Michael Pettis
 
• "Curbs Needed to Avoid China Property Chaos" Says China's Premier; Chinese Economy Already in Hard Landing? Regardless, It's Too Late to Prevent Chaos
 
• Michael Pettis: Long-Term Outlook for China, Europe, and the World; 12 Global Predictions

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List