A few charts from the close of last week.

Regards - VHF

-

Gold had a wild week. It fell to as low as $1,326 U.S. last Tuesday, but quickly reversed with weakness in the U.S. Dollar. It added $35.40 (2.61%) by the end of the week to close at an all time high. Short term momentum indicators quickly moved from neutral to overbought, but have yet to show signs of peaking. Gold has a history of moving higher from the beginning of November to the end of December.

The TSX Gold Index gained 9.89 points (2.45%) last week in response to higher gold prices. The Index broke above resistance at 412.38 on Friday and resumed an intermediate uptrend. Short term momentum indicators recovered from neutral to overbought, but have yet to show signs of peaking. Strength relative to the gold recently has turned positive, an encouraging technical sign for both gold and gold stocks. Gold stocks also have a history of moving higher from early November to the end of December.

Ditto for Silver! It gained another $2.00 U.S. per ounce (8.09%) last week. Short term momentum indicators have moved from neutral to overbought, but have yet to show signs of peaking. Strength relative to gold remains positive. Seasonal influences turned positive at the beginning of November.

Platinum added $44 U.S. per ounce last week. It broke resistance at $1,755 to reach a new two year high. Strength relative to gold remains neutral.

Copper gained 21.5 cents U.S. per lb. (5.76%) in response to U.S. Dollar weakness. Copper is testing its all time high set in July 2008 at $4.08. Seasonal influences for copper turn positive at this time of year.

The CRB Index gained another 12.89 points (4.29%) last week in response to weakness in the U.S. Dollar. Short term momentum indicators quickly returned to overbought levels.

Crude oil gained $5.56 U.S. per barrel (6.83%) last week in response to weakness in the U.S. Dollar. On Friday, it briefly broke above resistance at $87.26 to reach a two year high. Short term momentum indicators have recovered to overbought levels, but have yet to show signs of peaking.

Unleaded gasoline added $0.12 U.S. per gallon (5.83%) last week and is testing resistance at $2.20. Short term momentum indicators have returned to overbought levels.

Natural gas slipped $0.05 U.S. per MBtu last week. Intermediate trend remains down. Support is at $3.48 and resistance is at $4.24. Short term momentum indicators continue to recover from oversold levels.

World currency markets focused on the U.S. Dollar last week following news about Quantitative Easing II. In overnight trading on Thursday morning the U.S. Dollar moved sharply lower and broke support at 76.14. Positive responses by equity markets around the world were immediate. Notably stronger were U.S. equities with international exposure, commodities priced in U.S Dollars and commodity sensitive equity markets. The U.S. Dollar fell 0.58 last week. Intermediate trend remains down. Next support is at 74.23. The U.S. Dollar Index remains well below its 50 and 200 day moving averages. Short term momentum indicators are oversold.

Conversely, the Euro added 1.15 last week in response to weakness in the U.S. Dollar despite widening interest rate spreads on European sovereign debt. The Euro remains well above its 50 and 200 day moving averages. Intermediate trend remains up. Short term momentum indicators remain overbought.

The Canadian Dollar added 1.94 cents U.S. last week and is testing resistance at 100.10. Short term momentum indicators have returned to overbought levels.

The S&P 500 Index gained 42.59 points (3.60%) last week. Intermediate trend remains up. The Index broke above resistance at 1,219.80 last week to reach a two year high. The Index remains well above its 50 and 200 day moving averages. Support is at 1,039.70. Short term momentum indicators returned to overbought levels and have yet to show signs of peaking.

The Dow Jones Industrial Average added 325.59 points (2.96%) last week. The Average broke above resistance at 11,258.01 to reach a two year high. The Average remains well above its 50 and 200 day moving averages. Short term momentum indicators returned to overbought levels. Support is at 9,936.62. Strength relative to the S&P 500 Index has turned from mixed to negative.

The TSX Composite Index added 248.87 points (1.96%) last week. The Index remains in an intermediate uptrend. Support is at 11,065.53. The Index remains well above its 50 and 200 day moving averages. Short term momentum indicators have returned to overbought levels. Strength relative to the S&P 500 Index has turned from mixed to negative.

The yield on 10 year Treasuries slipped 7.6 basis points last week. Intermediate trend remains down. Support is at 2.334%. Resistance is at 2.827% and may be forming at 2.720%. Short term momentum indicators currently are neutral.

The Baltic Dry Index fell 183 points (6.8%) last week. The Index is testing the bottom of a 3 month trading range between 2,444 and 2,995.

The Volatility Index plunged 13.9% last week and is testing support at 17.90%