I regularly get a series of commodity index updates from Dow Jones – I originally started to get these when ETF trackers for commodities began to come online.
From my perspective the interesting thing is the notion of time frames that they apply – as you can see from the data below all indices have performance data going back 10 years. There is obviously a demand for this sort of data outside simply academic interest.
From my old days in the industry I know that analysts use this sort of data in their pitches. The only problem is that it is totally irrelevant to a trader. In fact it is irrelevant to everyone since only the dim and the foolhardy would hold a given commodity/index for 10 years based upon historical returns.
Much more relevant to traders are what I would call breakout returns. This is data collected over a much shorter time frame and indicative of a breakout in price. For those without commodities data you can use a service such as Finviz where you can look at relative performance over a variety of time frames and correlate this to whatever your notion of a breakout is. However, there is an important caveat that we will see below
OJ has been performing in a relative sense but when we actually look at price action it is still stuck in a band with upper price action struggling to make a new high at beyond 130. Relative performance is just that, it is relative to other instruments and not necessarily indicative of a price breakout.