Comments for January 25, 2010

LOOKING AHEAD TO MONDAY BY REFLECTING BACK ON FRIDAY'S ACTION

Eurodollar continues to be in a long-term uptrend

Canadian dollar, despite last week's big sell-off, looks to be in an area of strong support

FINANCIALS: 01/25/10 Higher for the notes and bonds while lower for the eurodollars. The eurodollar continues to be in a long-term uptrend now with a TRIPLE TOP in the March contract which probably doesn't mean much because of such narrow ranges practically everyday. The bonds and notes made new recent highs and closes again as their short-term trend continues higher.

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CURRENCIES: 01/25/10 Higher closes Friday for the dollar index, Japanese yen and Euro Fx while lower for the Swiss Franc, British pound, Canadian dollar and Aussie dollar. The euro closed slightly higher and the franc slightly lower this time but, once again, no changes technically. The euro has resumed its long-term down-tend while the franc is not, at least yet, giving me a sell while continuing to hold its support. The yen made its highest high and close sincethe middle of December as its short term uptrend continues. The Canadian dollar closed down for the 5th consecutive trading session still in a strong support area where bulls can consider taking a long position. The Canadian dollar's drop has been practically straight down and needs to hold the 9300-9400 area! The pound settled lower for the third day in a row and now could be forming a larger bottom. However, it's running out of room! Either way my buy signal is still in place while its trend since the middle of November is down. The Aussie dollar also settled lower for the third day in a row still needing to hold the 9000 area not quite giving me a sell signal. The dollar index settled slightly lower still not quite giving me a buy signal. Overall the dollar has been actually trending higher since the end of November. Either way, today's action has forced me to remove my sell signaI.

METALS: 01/25/10  Lower Friday for silver, gold, platinum and copper once again. All of the metals continue to be in up-trends but have been forming potential tops and are still near possible sell signals. Copper is still in a uptrend but but made a new recent low before rallying to settle higher in reversal type action. Also copper had a failed bull triangle earlier in the week. Gold settled below the all important 1100 price not yet giving me a sell signal but ending my buy signal. Silver made a new recent low and close now at the bottom of a support area. Platinum had a huge range making its lowest low and close in over two weeks close hurting its up-trend but not giving me a sell signal, at least yet.