060509: The anticipated pull back in the major currencies vs. the US Dollar materialized this week. While still too early to be looking for a trade, many of its trading pairs have hit their upside objectives and one ought to consider a period of consolidation before their next moves. Interestingly, gold never did break out (only breaking its recent sell pattern) suggesting that the greenback may not be as weak as its price suggests. In other markets, US equities finally broke the sell patterns going back more than half a year. While the Nasdaq, Australia and Japan where already pointing higher, the Dow and the S&P 500 noww too have bullish short/med. term chart patterns working (refer to this week's spotlight for more). Agriculturally speaking, grain prices continue to look up at the same time as meat prices are breaking to new lows. While I have been a proponent of being long the grains of late, I have taken some profits as prices have moved up quite a bit. I will be looking to re-enter my long position on any correction.
That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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