12/04/09: After the release of an encouraging North American November employment situation reports, the US dollar rallied smartly and gold fell appreciably. Interestingly, this price action did not break any existing trends (in either the currencies or the metals) and on further inspection one gets the impression that Friday's move was more of a daily oversold bounce rather than the emergence of any new trends going forward. I shall continue to look for the US dollar index to test its 2007 lows in earnest (at or near the 72 level). Elsewhere, most of the existing trends in commodity prices have remained in tact with the notable exception of Live Cattle. While very early, a weekly sell signal has been generated and a break of the 79 level could lead to a big drop in price very much like the action seen in the Pork Bellies market earlier this year.
That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
