Gold Bug

• May 9, 2001
• Marc Dupee

June gold
(
GCM1 |
Quote |
Chart |
News |
PowerRating) rallied in overnight Access trading,
resulting in a gap-up opening to a new two-month high and follow through in
trading this morning at the Comex. This leaves gold making good on its Pullback From Highs List
signal. Gold has also been showing it could make a larger-than-normal move by
registering on the Multiple Days Low
Volatility List. The dollar could play a role here since higher dollars make
dollar-denominated gold relatively more expensive. The June dollar index
(
DXM1 |
Quote |
Chart |
News |
PowerRating) is trading near a contract record. This could work to put a lid on
gold prices. 

July
silver
(
SIN1 |
Quote |
Chart |
News |
PowerRating) is following in sympathy and coming off contract
lows. 

Also in the metals, copper
(
HGM1 |
Quote |
Chart |
News |
PowerRating) tagged
its contract bottom in a double-bottom formation and surpassed its April 30 low
which set up a same-day Turtle Soup reversal. Copper has, therefore, left a tail
at a double bottom in a soup setup. 

Also in the reversal
department, cotton
(
CTN1 |
Quote |
Chart |
News |
PowerRating) is
trading right at its Turtle Soup Plus One Buy
trigger. 

As mentioned in last night’s Futures Markets Outlook, June lean hogs
(
LHM1 |
Quote |
Chart |
News |
PowerRating)
are moving lower out of their
Pullback From Lows
setup.