LOOKING AHEAD TO TUESDAY BY REFLECTING BACK ON MONDAY'S ACTION
The US Dollar settled higher but is still in a strong Downtrend. Copper breaks out of its Bull Pennant.
CURRENCIES: 10/20/09 Higher closes yesterday for the British pound, Euro Fx, Swiss franc, British pound, Japanese yen, Aussie and Canadian dollar along with the Japanese yen while lower for the dollar index. The euro made a new CONTRACT HIGH CLOSE while the franc had its highest close since July '08. The yen, like the rest of the currencies, settled higher still giving me a sell signal while forming an even larger potential sell signal while, at the same time, still in a long-term up-trend. followed through lower form Thursday's sell signal. The Canadian dollar also had a weak close but its up-trend is still in tact. Unfortunately though, it has little support down to the 9400 area basis the December contract. The pound closed sharply higher again off its sharply higher close on Thursday but needing to close over 16500 at this time to give me a buy signal. The Aussie dollar made another new recent high but closed lower in reversal type action. However, this is one strong currency. Finally, the dollar index settled higher but still in a strong down-trend overall.
METALS: 10/20/09 Higher to sharply higher closes Monday for copper, gold, silver and platinum. All of the metals are still in up-trends with copper closing sharply higher breaking out of a BULL PENNANT to it highest close since September '08. Now copper is at the upper end of a trading range going back to early August. Silver and gold closed higher again poised to move higher from their present consolidation areas. Platinum also closed higher holding up well overall and also acts like it will break out of its present consolidation area. Friday's action could be important if there is a good follow through to the downside!