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FMX | Connect – www.fmxconnect.com - (Reported 6/22/2010)

The following is an excerpt from the Commodity Trader’s Chart Book by Dan Wantrobski.

 

 

 

 

 

 

Stocks could not hold on to gains triggered from weekend yuan developments. Instead, the S&P rallied into its declining 50-day moving average before reversing to close lower on the session, posting a minor outside negative day:

 

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This intra-day reversal on the S&P yesterday was met by failures in other risk metrics, such as the euro and copper prices:

Euro: 1.2272

 

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While the safe havens all reversed higher by day’s end:

U.S. dollar: 86.460

 

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Note the dollar’s reversal yesterday off its rising 50-day moving average…

Gold prices took a hit yesterday but remain above their rising 50-day moving average as well:

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Two factions in the bears’ camp are looking for gold prices to continue moving higher: those that anticipate further reflation / the onset of inflation; and those expecting another major crisis (a down leg in the equity / asset markets). Only if we see a major chart breakdown in this precious metal would there be any chance for some type of goldilocks global recovery in our view- until then, the gold market is still giving us a huge no-confidence vote for any clear sailing ahead. We believe initial bullish support now lies near the $1180 zone.

 

Full Credit to:

Dan Wantrobski, CMT

Janney Montgomery Scott LLC

 

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