Comments for February 5, 2010
Looking ahead to Friday by reflecting back on Thursday's trading action
Sell Signals for Metals Abound
METALS: 02/05/10 Sharply lower closes Thursday for the copper, gold, silver and platinum. Copper made its lowest low and close since last October as the selloff continues at more than a 45 degree angle lower going through some support like it wasn't there. Gold now has also given me a SELL SIGNAL with its lowest low and close since early November and, more importantly, settling below 1075 basis the April contact. Silver tumbled to its lowest low and close since early September while platinum closed down sharply also giving me a SELL SIGNAL.
ENERGIES: 02/05/10 Sharply lower closes yesterday for the crude and heat along with the rbob while slightly lower for natural gas.The crude and heat made their lowest lows since early October but the latter is now in a support area. The rbob also fell sharply to a support area while gas settle lower but did have a nice rally off its lows. However, gas has has been making lower highs and lows for the last month. So far we've seen the energies rally up into strong resistance areas giving anyone bearish a chance to sell!