Gold building up a head of steam!

The following comments were sent to Myra P. Saefong, Financial Writer for Marketwatch.com, at 8:47 AM EDT.
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The outlook for the Precious metals continues to brighten as we are now in Day 3 of this rally in Gold. The market has to overcome two trendlines, one short-term and the other a longer-term trendline drawn from the May highs, but I believe that this area of resistance won't pose any real problem for GOLD. It took 5 months for the market to correct and I believe this correction is over and the next big leg up has begun. My best guess, since I don't make market predictions, is that we'll see DEC GOLD trading near the $650 level before the end of the year! New highs in 2007? Bet on it.

Dale F. Doelling

Chief Market Technician

Trends In Commodities

BUY DEC GOLD!!

The following comments were sent to Myra P. Saefong, Financial Writer with Marketwatch.com, at 9:04 AM EDT.

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We have another interesting scenario developing in the DEC GOLD contract this week. The daily chart is tracing out a potential HEAD & SHOULDERS bottom that could translate into a vigorous rally in the metals complex over the next few weeks. The low on 9/14 of 576.60 should provide the necessary support if this pattern holds true. A test of that area and then a gradual turn higher would complete the pattern allowing DEC GOLD to finally break through overhead resistance at the 50-day MA currently at 604.60. Should this occur the stage would be set for a rally back to the $650 level in the near-term. SILVER would likely follow Gold's path as it has consistently held the 10.55-10.60 area since mid-July.

Copper continues to trade sideways and further weakness will likely be seen with support coming in near the 3.20 area. If the market were to break this area of support then a retest of the June lows below 3.00 would become a strong possibility.

Dale F. Doelling

Chief Market Technician

Trends In Commodities

Like "deja vu" all over again!

Gold and Silver are walking the line of unchanged this morning but I haven't given up on my theory that a "reversal of fortune" is about to take place in the metals complex. This is a great example of Inter-Market analysis where the direction of one market correlates to the direction of another. Yesterday I alerted our clients to a scenario that isn't dead yet even though it didn't quite play out the way we had expected it to. This is like "deja vu" all over again. I can remember the stock market crash of '87 as if it were yesterday. I believe this October, like October of 1987, may have a surprise for the markets that will drastically change traders' perspectives. Is there anyone out there in the financial world that doesn't think that "UP" is the only way stocks can go? Complacency is like a cancer - once it's discovered it's usually too late to do anything about it. So traders need to keep their fingers on the trigger and be ready to BUY GOLD and SILVER between now and Friday if my theory comes to fruition. It could be the last great buying opportunity of 2006.

Dale F. Doelling

Chief Market Technician

Trends In Commodities

Will today be "the day the music died"?

The DOW Industrial Average FINALLY breaks the 12,000 mark then quickly ducks for cover. Can we mark our calendars showing that 10/18/06 was the beginning of the end for stocks? It's still too early to tell but I've been talking about this exact scenario to our clients and, if it does hold true and the DOW ends the day in negative territory, this may just end up being the top in the Stock Index futures.

Stay tuned!

Dale F. Doelling
Chief Market Technician
Trends In Commodities

Coverage on TheStreet.com

I'd like to thank Mr. Simon Constable, Financial Writer for TheStreet.com, for adding Trends In Commodities to his list of market commentators. You can read today's comments on TheStreet.com.

Market comments for October 5, 2006

The following comments were transmitted to Myra P. Saefong, Financial Writer at Marketwatch.com, at 8:47 AM EDT.

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This short covering rally this morning is, unfortunately, nothing more than a good opportunity to sell Gold and Silver. The technical picture is quite clear as the trends in the metals remain down. Now that I've given you the gloom and doom let me say that it's always darkest before the dawn and I happen to think that the bottom is near. The Financial markets are near their respective peaks where the air is getting very thin. That's the reason for all the euphoria. The lack of oxygen is causing a return of "irrational exuberance" only this time we've got a lot more negatives that come into play. One look at a daily chart of Gold and we're quickly reminded how fast markets can turn. Well, don't look now but the recent pullback in the metals complex will pale in comparison to what's in store for the financial markets. It's time, once again, for stock traders to take their medicine and this will benefit Gold and Silver tremendously over the next couple of years. As a matter of fact, by the time the dust settles, traders won't want to own anything BUT Gold and Silver. Remember, you heard it here first.

Dale F. Doelling

Chief Market Technician

Trends In Commodities