Dollar Watch

In a previous post I noted coorelation between commodity deleveraging and it's affect on the Dollar and Stocks - link . With that theory as a basis I believe the action in the dollar will have implications in commodities, namely a weakening dollar should accompany stronger commodity prices. The descent of commodities (in general) seems to have stalled although no tradable pattern has emerged yet. However the short term action in the dollar is flashing sell signals.

Dec Dollar futures, DZX8 as a proxy for the Dollar:

Ag commodities look poised to fare best in this scenario (hat tip to Tim). The pattern is not fully formed nor confirmed by volume, but promising and one to watch nonetheless.

I would like to see a reversal in the commodities index as well.

To summarize, I'm looking for the dollar to lead commodities. The dollar may be topping. I think AG commodities may be a better play than say oil or precious metals. The latter still have a bearish look to them.