The last chart is of
PowerShares DB Commodity Index Tracking
. This commodities basket carries the most weight in energy and precious metals.
Oil has seen a steep rise as geopolitical tension in North Africa quickly elevated the past few weeks. The premium tied to this has been a major reason for the large move in price.
Gold too has seen a large run-up in the past few weeks. Both a weak dollar and falling equity markets have pushed funds into the precious metal.
The price action in commodities remains strong, but the index is moving toward on major resistance levels.
A stronger dollar could push the index lower, but if that is accompanied by falling equity markets and continued strife in North Africa, it is uncertain where the index will go.
Keep an eye on this commodities basket over the next few weeks to gauge how investors integrate the new outlook on monetary policy and their feelings on commodity market strength.
At the time of publication, Sachais had no positions in securities mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.