Comments in this blog refer to my charts collection found at http://stockcharts.com
For intra-week comments go there, updated more frequently.

Saturday, April 30, 2011

Weekend wrap.

A nice rally to the end of the week and month put new highs on many charts that I follow. Not much to complain about. SPX broke decisively resistance and appears to be on its way to 1400 and beyond.
Russell 2000 printed new all-time high, getting rid of overhead resistance and is trying to squeeze the best out of the remaining favorable season before the summer doldrums hit.
US dollar keeps dropping and got ahead of schedule threatening to land on 71 in a week or two if this free-fall continues, instead of 1 or 2 months. A bounce is expected from that level and that could mess up my timing for gold and commodities which I expected to run well into June.
Gold picked up the pace to the dollar's tune and ended the week and month against the long-time trendline, breakout of which would put it into a steeper trajectory, after eventual correction.
That takes us back to the longer-term dollar chart, that suggests the final bottom in the low 60s.
Silver is getting well to much attention, and truly I do not like it.
Oil is trying to climb over 115 and it is starting to hurt at the gas station.
Natural gas made its move and broke out, making it probably the only commodity around that looks fresh and not loved to death (this sentence has interesting connotations).
It should get to 6 bucks by the summer before required rest and then Fall/Winter rally which I am planning to use to help paying for the heating bills.
In summary, all as expected and a little worry about potential timing issues for the dollar that could influence the commodities and all the rest.

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