Gold and Silver have both posted new all time highs this morning after strong overnight action. SPZ and DJZ, the stock indexes, have made new 9 month highs as well, as it seems that the weakness in the dollar will continue to put US equities, as well as our commodities on sale for the rest of the world.
All the grains are currently higher as well, however, with the usual volatility, we have seen pull backs off of our early morning highs.
Today looks like a day to attempt to buy dips, or pullbacks in these markets.
As of 10:30 AM, CST, Gold has a new all time high at 1134.90, and Silver, which had been lagging the gold, popped above its old high at 18.175 to post a new high at 18.3450…
In the stock indexes, we have SPZ posting a new high at 1,109.50 and DJZ flirting with the 10400 level as I write this comment. As we look for resistance on the daily charts for these stock indexes, one can see that we are looking at some pretty higher numbers in both these indexes until there is any historical resistance. I would look at 10,500 and 10,750 and the 11,000…. That might be our Christmas surprise, the Dow settling at 11,000 ??? I doubt too many people took the over/under on that bet at this Summer’s 4th of July Party…
Currently, the grains are being supported, with WZ up over 16 cents at the 555 level, CZ up 9 cents at the 4.00 bush ell level, and SF, (Jan Beans) flirting with the trend line intersection today at the 1015 1/4 level, after trading up early to the 1010 level for a current day session high. All of the grains have now had intra-day pullbacks from this mornings early highs, as the grains popped up on sympathy with the lower dollar and higher metals..
Crude Oil has popped up as well, although last Friday’s low at 75.57 should be kept in mind. Crude Oil currently is over 2 dollars higher, trading at a high of 78.99, basically 79 dollars… There is resistance on the charts at each round number dollar figure, 80, 81 and 82, although, with a stock market rally, traders will be bullish anticipating increased demand if the economy is indeed able to continue to rise from these levels.
Good Trading