Global Commodity Stocks Entered Bearish Downtrend

Fidelity Global Commodity Stock Fund (FFGCX, last change: -2.74%)

Wall street reacted negatively today after the newly released Fed minutes hinted at slowing the Fed’s bond buying policy that is often referred to as QE3. The largest sell off happened in market sectors related to commodities. That explains why the Fidelity Global Commodity Stock Fund (FFGCX, last change: -2.74%) was one of the weakest performers in our survey of Fidelity funds. FFGCX has moved below the gray trend line on the chart and now it is in a downtrend. We would avoid investments in commodity-related stocks at this point.

 

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Bear corner: global commodities are spiraling down again

The Fidelity Global Commodity Stock fund (FFGCX, change: -2.96%) is the weakest Fidelity international fund today.

The Fidelity Global Commodity Stock fund (FFGCX, change: -2.96%) is the weakest Fidelity international fund today.

 

Mutual fund screens and buy/sell signals are provided by FidelitySignal.com  

Panic selling continues

The stock market has dropped in panic selling in the last two days and is approaching the support level (see FUSEX chart below). Our best hope is that short sellers will cover their positions ahead of the weekend, which will lead the market higher while reinforcing the support level.

Fidelity Spartan 500 Index fund (FUSEX, change: -3.18%)

Fidelity Spartan 500 Index fund (FUSEX, change: -3.18%)

The selling of equities today was ferocious, reminiscent of the worst days of 2008.  Energy services stocks got hit especially hard (see FSESX below). This was part of the global sell-off of commodity-related investments (see FFGCX below).

Fidelity Select Energy Services fund (FSESX, change: -6.92%)

Fidelity Select Energy Services fund (FSESX, change: -6.92%)

Fidelity Global Commodity Stock fund (FFGCX, change: -6.46%)

Fidelity Global Commodity Stock fund (FFGCX, change: -6.46%)

Mutual fund screens are provided by FidelitySignal.com