What’s Up, What’s Down: Gold Gives a Buy Signal

Comments for Tuesday, January 5, 2010

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


Higher closes yesterday for the Eurodollar and notes but lower for the bonds but no changes technically. The Eurodollars are still in a support area closing on the same contract high price for the third time. The bonds and notes continue to look lower overall with the former in a small BEAR PENNANT. 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! I hold sell signals for bonds and notes. Please feel free to contact me for details.

US Treasury Chart


Higher to sharply higher settlements Monday for copper, gold, silver and platinum. Copper continues to look higher with a new recent high and close( highest high and close since 2008) again while platinum made a new CONTRACT HIGH AND CLOSE. Gold gave me a BUY SIGNAL but silver still looks lower in the short-term making lower lows and highs since the middle of December.

Gold 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.