MARKET FORCE ANALYSIS FLASH

SEPTEMBER 11, 2008

By Adrian Douglas

The Market Force Analysis is indicating very much improved conditions for the key commodities so this is just a brief flash.

GOLD (Figure 1)

The gold MFA has been dropping fast toward lower support. It is not quite there yet but it is getting into “low risk” entry territory and is probably a good time to start layering in some long trades.

Gold is trading at $750.

FIGURE 1

COPPER (Figure 2)

The copper MFA is holding well at lower support and is less volatile than the precious metals! It is still a low risk entry.

Copper is trading at $3.16/lb.

FIGURE 2

CRUDE OIL (Figure 3)

Crude is looking the best of all with the MFA almost on lower support. The downside is a fistful of dollar while the upside is beyond $150.

Crude is trading at $101.3/Bbl

FIGURE 3

SILVER (Figure 4)

The MFA in silver has not dropped much and is further from its lower support than either gold or silver. This is perhaps not surprising when one considers that this market represents the most dire disconnect between the physical market and the futures market.

Silver is trading at $10.56/oz (which is the price of silver as long as you don’t want any!)

FIGURE 4

US DOLLAR (Figure 5)

The MFA for the dollar really says it all. This is the end of the superficial, Cartel induced short squeeze rally. The MFA is at the top of the bear market descending channel. This will be all she wrote for now.

The USDX closed at 79.93

FIGURE 5

(I have switched back to my old date supplier as the noise issues have been resolved)

Summary

The market internals have improved drastically. The dollar looks like it is now ready to perform a belly flop! Will the US Treasury now be renamed Hanky May, and Benny Mac?

The complete charade of the manipulated paper market trying to masquerade as price discovery for the physical markets, on behalf of those who have no metals is coming to an end. We are not quite in rocket launch mode yet and there will be some chopping but considering many beaten up longs have switched to the short side while the Cartel has switched to the long side the upleg could be fast and furious. Bottom fishing opportunities may be short lived.

Adrian Douglas

September 11, 2008

info@Marketforceanalysis.com