The following comments were sent to Myra P. Saefong, Financial Writer for Marketwatch. com, at 9:02 AM, CST:
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The year 2005 has provided us with some great markets and some great trends to trade. The Precious metals certainly rank at or near the top of that list. I believe that "we ain't seen nothin' yet". This year has just been a warmup for 2006. The Perfect (Financial) Storm is about to come raining down on us and the Precious metals will be the place to be in the coming year. Record high debt levels, both public and private, a housing debacle that is currently underway, the return of "Stagflation", and a sharply lower stock market will turn the Precious metals sharply higher and possibly to new all-time highs. I'm sorry to have to be such a "Grinch" on the last trading day of the year but I have to tell it as I see it. America's standard of living has been artificially supported for way too long and this has allowed the average consumer to spend like there's no tomorrow, using their homes like ATM machines. When the speculative froth begins to evaporate (it already has in some areas) the result is going to be too much for the economy to stand. We've been living high on the hog for too long and we're about to experience the flip side of our largesse. Markets go up and markets go down. Hold on to your Gold, Silver, Platinum, Palladium and Copper. These are the markets that will pay huge rewards and keep you out of harm's way in 2006.
Happy New Year!
Dale F. Doelling
Chief Market Technician
Trends In Commodities
Friday, December 30, 2005
Tuesday, December 27, 2005
Precious metals brighten!
With traders back from the Holiday break, it's looking more and more like the end of the year is going to be a good time for the Precious metals complex. Gold, having held support at the 50-day MA, is now attempting to close back above the 20-day MA at $510.40. Should this occur, expect a sharp rally as we head into week's end.
Silver's technical picture is even brighter as it closed just above its 20-day MA on Friday and only needs to close above the 12/19 high of $8.75 to provide the fuel necessary for its own year-end rally. Silver may just take the lead in powering the metals to a strong weekly close.
Copper becomes more "precious" every day and remains the most resilient and determined market in the entire metals complex. I've said previously that there's no ceiling to this market as the trend in Copper continues to advance. Friday's breakout to new contract highs was a very good sign that $2.50, basis the January contract, is the next target. I certainly wouldn't bet against it.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
Silver's technical picture is even brighter as it closed just above its 20-day MA on Friday and only needs to close above the 12/19 high of $8.75 to provide the fuel necessary for its own year-end rally. Silver may just take the lead in powering the metals to a strong weekly close.
Copper becomes more "precious" every day and remains the most resilient and determined market in the entire metals complex. I've said previously that there's no ceiling to this market as the trend in Copper continues to advance. Friday's breakout to new contract highs was a very good sign that $2.50, basis the January contract, is the next target. I certainly wouldn't bet against it.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
Thursday, December 15, 2005
My apologies
I must offer my apology for not having updated the weblog recently. Due to circumstances beyond my control, I have been unable to keep up with my regular posts. I have added this item to my New Year's resolutions so, hopefully, I'll be more consistent in the New Year.
The following comments were transmitted to Myra Saefong, Financial Writer at Marketwatch.com, this morning at 8:11 AM EST.
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The daily chart on Gold is almost identical to the daily chart on the Dollar/Yen as both have taken a pounding the last 3 days. Obviously, traders are watching the $500 level very closely as Gold continues its decline. The Gold market is well known for these sharp retracements and it was just a matter of time before traders pounced on the opportunity to ambush the markets again. With volatility now reaching extreme levels I'm expecting the markets to quiet down somewhat as we head into the New Year. With the FEB GOLD contract testing the 20-day MA this morning we'll have to see how the market reacts to this first area of support. If Gold manages to hold here, then the market could just turn and make new highs before the year ends. Although the Precious metals markets have managed to come well off their extremely overbought condition, Gold could pull the entire metals complex lower if it manages to log consecutive closes below the $500 mark. If that were to happen, we could be in for an ugly end to, what so far has been, a stellar year for these markets.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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The following comments were transmitted to Myra Saefong, Financial Writer at Marketwatch.com, this morning at 8:11 AM EST.
__________________________________________________________________
The daily chart on Gold is almost identical to the daily chart on the Dollar/Yen as both have taken a pounding the last 3 days. Obviously, traders are watching the $500 level very closely as Gold continues its decline. The Gold market is well known for these sharp retracements and it was just a matter of time before traders pounced on the opportunity to ambush the markets again. With volatility now reaching extreme levels I'm expecting the markets to quiet down somewhat as we head into the New Year. With the FEB GOLD contract testing the 20-day MA this morning we'll have to see how the market reacts to this first area of support. If Gold manages to hold here, then the market could just turn and make new highs before the year ends. Although the Precious metals markets have managed to come well off their extremely overbought condition, Gold could pull the entire metals complex lower if it manages to log consecutive closes below the $500 mark. If that were to happen, we could be in for an ugly end to, what so far has been, a stellar year for these markets.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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