What’s Up, What’s Down: Copper in Bull Run, but Financials Drift Lower

Comments for Monday, January 4, 2010

Looking Ahead to Today by Reflecting Back at Thursday’s Price Action


Higher closes last Thursday for copper, gold, silver and platinum. Copper continues to look higher with a new recent high and close (highest high and close since 2008). Gold settled higher and has been consolidating over the last week while silver hasn’t been able to hold 1700 basis the March contract which is my first sign of turning lower but hasn’t quite given me any signal at this time. Platinum also settled higher still acting like it will test its highs soon. I hold Buy Signals for Copper; Sell Signals for Gold. Please feel free to contact me for details.

Gold Chart


Unchanged for the Eurodollars while lower for the notes and bonds again but no changes technically. The Eurodollars are still in a support area while the bonds took out its double bottom making a new recent low but managed to close in the upper hand of a huge trading range along with the notes. Except for ‘flight to quality’ I can’t see why people would want to be long the financials with interest rates at or near rock bottom and the indices still in up-trends at this time! Continue to look for lower financials overall.

Treasury Bond Chart

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.