Wednesday, October 13, 2010

Stock Market and Commodities Commentary For Wednesday Evening Oct. 13th

The U.S. stock indexes closed higher today and hit fresh five month highs. The stock index bulls have the overall near term technical advantage as price uptrends are in place on the daily bar charts. Stock index bulls have been very pleased with price action so far this autumn a time which is normally not favorable to market bulls. My bias is that prices will trade mostly sideways, but with a slight upside bias, into the end of the year.

Crude oil closed up $1.36 at $83.03 a barrel today. Prices closed nearer the session high today in the wake of a bullish IEA report that showed increasing worldwide demand for oil. A weaker U.S. dollar index also supported crude today. Prices are still in a six week old uptrend on the daily bar chart. The next near term upside price objective for the bulls is producing a close above solid technical resistance at last week's high of $84.43 a barrel.

Natural gas closed up 5.5 cents at $3.684 today. Prices closed nearer the session low today. More tepid short covering in a bear market was featured today. The bears still have the solid overall near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $4.00.

Gold futures closed up $25.30 at $1,372.00 today. Prices today closed near the session high and scored another fresh all time record high. A weaker U.S. dollar index and a two year high in the Continuous Commodity Index invited fresh speculative interest into the gold market on the long side today. The gold bulls have the solid overall near term technical advantage. Prices are in a 2 1/2 month old uptrend on the daily bar chart.

The U.S. dollar index closed down 28 points at 77.30 today. Prices closed near the session low again today and are hovering near a nine month low. Bears still have the solid overall near term technical advantage. There are still no early clues to suggest a market bottom is close at hand.

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