The Great CRB Escape Part II.

When the CRB and CRX commodity indexes broke support back in 2008, we experienced the “Great Escape.” Investors started selling everything in sight, and the CRX index fell 50% in a matter of months, taking stocks with it.

Is GE2 (Great Escape II) about to take place?

These two key commodity indexes have created bearish looking patterns of late and are breaking key support, similar to the action in 2008.

If history and patterns are any kind of a guide, the breakdown in the CRB/CRX index is suggesting thatGE2 is close to picking up speed. Protection of assets is the key strategy in this type of environment.

Images: Flickr (licence attribution)

About The Author

My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.

My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.

Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.

Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.