A few charts from the close of trading on Friday. No doubt commodities are beginning to perk up.

Regards - VHF

-

Gold gained another $28.20 last week to close at an all time closing high. Gains can be attributed to U.S. Dollar weakness. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Gold has a history of entering into a short term correction at this time of year. Gold equities have a history of entering into a short term correction at this time of year shortly before gold enters the correction. Weakness in the month of October provides an opportunity to re-enter/add to positions.

Gold Futures (GC) Seasonal Chart

Gold equities are lagging gold. Most gold equities peaked two weeks ago. Short term momentum indicators have rolled over.

Silver gained another $1.12 per ounce last week. Silver continues to outperform gold.

Platinum gained another $26 U.S. per ounce last week and is testing resistance at $1,755.

Copper gained another 8.40 cents per lb. last week. All of the gain came on Friday on news that the Shanghai Composite Index had broken resistance. Short term momentum indicators are overbought.

The grain ETN jumped $5.97 (14.4%) last week. Most of the gain occurred on Friday on projections of a smaller than expected U.S. grain crop.

Agriculture equities and related ETFs responded to higher grain prices. MOO broke resistance at $47.90 on Friday to reach a two year high on higher than average volume. ‘Tis the season for the Agriculture sector to move higher until the end of December.

The CRB Index gained another 9.42 points (3.30%) last week. Much of the gain occurred on Friday when grain prices literally exploded on the upside following release of a report showing a smaller than expected U.S. grain crop. The Index broke resistance at 293.75 on Friday to reach a two year high. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Crude Oil gained $1.22 U.S. per barrel last week. It broke resistance at $83.05. Volatility was exceptional (i.e. over a $4.00 range during the week. Short term momentum indictors are overbought and showing early signs of peaking.

Gasoline added $0.06 per gallon last week and briefly broke above resistance at $2.193. Short term momentum indicators are overbought and showing signs of peaking.

The U.S. Dollar Index fell another 0.83 last week. Intermediate trend remains down. The Index is testing support at 76.60. It remains below its 50 and 200 day moving average (and recently completed the so called “Death Cross” when its 50 day moving average fell below its 200 day moving average). Short term momentum indictors are substantially oversold, but have yet to show signs of bottoming.

Conversely, the Euro gained 1.50 last week. Intermediate trend remains up. Support is at 125.91. Short term momentum indicators are substantially overbought, but have yet to show signs of peaking.

The Canadian Dollar gained another 0.87 cents U.S. last week. It broke resistance at 98.70 to reach a five month high. Long term support is near 93 cents U.S. Resistance is at 100.51. Short term momentum indicators are overbought

The S&P 500 Index gained 18.91 points (1.65%) last week. Intermediate trend remains up. Support is at 1,039.70. Resistance is at 1,219.80. The Index remains above its 50 and 200 day moving averages. Short term momentum indicators remain overbought and showing early signs of peaking.

The Dow Jones Industrial Average gained 176.80 points (1.63%) last week. Intermediate trend remains up. Support is at 9,936.62. Resistance is at 11,258.01. The Average remains well above its 50 and 200 day moving averages. Short term momentum indicators remain overbought and are showing early signs of peaking. Strength relative to the S&P 500 Index remains mixed.

The TSX Composite Index gained another 172.51 points (1.40%) last week to reach another two year high. Intermediate trend is up. Support is at 11,065.53. The Index remains well above its 50 and 200 day moving average. Short term momentum indicators are overbought and showing early signs of peaking. Strength relative to the S&P 500 Index remains mixed.

The yield on 10 year Treasuries fell another 14.5 basis points last week, broke support at 2.419% and resumed an intermediate downtrend. Short term momentum indicators are oversold, but have yet to show signs of bottoming. Yield is responding to expectation of another quantitative easing program (i.e. QE2).

Price of the long term (20+ Year) Treasury ETF did not respond to a lower yield on 10 year Treasuries. Price slipped $0.39 last week. Short term momentum indicators are overbought and showing early signs of rolling over.

The Baltic Dry Index gained 10.0% last week, an encouraging sign for world trade.

The Volatility Index fell 8.0% last week. On Friday, it broke support at 20.85%. Short term momentum indicators are oversold, but have yet to show signs of bottoming.