This is just the beginning of a broader downturn for commodities, according to Lakshman Achuthan, co-founder of the Economic Cycle Research Institute. Achuthan said it all comes down to cycles and this point of the cycle indicates a move lower. Cycles in global industrial growth are closely linked to cycles in industrial commodity prices, including lumber,” Achuthan told CNBC’s Trading Nation on Wednesday. “While I know — lumber notwithstanding — people are still pretty bullish on commodities, with a cyclical downturn in global industrial growth getting underway things are going to shift the other way.”  Here is a direct video link.

Along with this cycle change in commodities, the USD has risen against the loonie since we added it back to our portfolios in June.  Now at 1.26USD, the next upside test is the 1.30 area as noted in my partner Cory Venable’s chart from June 30 shown below.