Energy’s Next Trade: The Grains

For the past several weeks here at Gold Rush, we’ve been pounding the table on energy. 

The integrated majors are breaking out, and services are following their lead. 

Even alternative energy, like solar, is rising.

But commodities don’t move in isolation.

Energy strength doesn’t just impact energy stocks. It ripples through transportation, chemicals, industrial inputs, and agriculture. 

When Crude Oil is working, it’s rarely just a Crude Oil story. It tends to spill over into other parts of the commodity complex. 

That’s why it’s so important to zoom out and look at the relationships beneath the surface.

When you overlay Crude Oil and Wheat, the similarity is striking.

Over the long term, these two markets trade far more alike than most investors realize. They rally together, they top together, and they base together. 
 

The 35-week rolling correlation reinforces this. As you can see, it's consistently positive and strengthening again in recent months

So if Crude Oil is resolving higher and energy leadership is expanding, history suggests the grains complex shouldn’t be far behind.

And the price action is starting to confirm that thesis.