[Charts] Flying, Lobsters, and Inflation

Lou Basenese

Friday, June 18, 2021

When Friday rolls around in the Trend Trader Daily Nation, we roll out the charts.

Why? Because we’re convinced there’s no easier way to get up to speed and positioned to profit than taking a quick glance at a graphic or two.

This week, we’re dishing on a return to normal across unrelated markets: airlines and commodities.

Take a quick look for yourself…

Taking Flight Again

In the last 24 hours, the European Union lifted travel restrictions for U.S. residents.

What happens next?

The same thing we’ve witnessed in the U.S. — a steady increase in travel.

As you can see in the updated version of the chart I’ve shared multiple times before, U.S. travel finally topped 2 million daily passengers. That puts us back within the normal, non-pandemic range.

Normal never felt so good!

(click image to enlarge)

Feed Me (More) Lobstah 

As I shared in my video update yesterday, prices for Maine lobster are clawing their way higher.

(click image to enlarge)

Blame surging demand thanks to the economic re-opening, and of course, the normal seasonal travel surge to New England, which supplies nearly 95% of the country’s lobster.

But here’s the funny thing about surging commodity prices: they can collapse just as quickly as they soar.

And that happened this week in droves.

As Bloomberg reports (emphasis mine):

Soybean futures have erased their 2021 advance, sliding more than 20% from an eight-year high reached in May, while corn and wheat have also tumbled. The Bloomberg Grains Spot Subindex slid the most since 2009 on Thursday, before edging higher on Friday as markets recovered some losses. Other commodities that have seen their big rallies evaporate include platinum, while once-surging nickel, sugar and even lumber have faltered.”

The poster child for the commodity boom (and now bust) cycle is none other than lumber.

Take a look…

(click image to enlarge)

All those “gurus” out there telling you to buy commodities to hedge against inflation need to get their heads checked. So do you if you follow them.

Super volatile assets aren’t the answer to hedging against inflation. Ever.

Ahead of the tape,

Tags: air-travel lobster