[isatrader]

Stocks are now favoured over commodities for the first time since the breakdown in 2000. So the current Stage 2 breakout could be a significant long term shift in the market cycle to a period favouring equities.

Stocks have underperformed commodities for 12 years, and for the last 5 years have been forming a long term Stage 1 base. This month they've completed a Stage 2 breakout above the previous highs in 2008 which they've been unable to get above until this month. The 30 month MA has also turned up and so commodities look to be on the decline versus stocks and so we could be seeing the beginnings of a long term shift back to stocks.