The Active Trading Partners tells us that he feels the equities market is nearing a significant top in the next couple weeks. If this is the case money will soon start flowing into commodities in general as more of the safe haven play. To support this outlook he is also factoring in a falling U.S. dollar. Based on the weekly dollar index chart it looks as though a sharp drop in value is beginning. This will naturally lift the price of commodities especially gold and silver.
The two most popular investments a few years ago have been dormant and out of the spot light. But from looking at the price of both gold and oil charts their time to shine may be closer than one may thing.
Seasonal charts allow us to look at what the average price for an investment does during a specific time of the year. The gold and oil seasonal charts below clearly show that we are entering a time which price tends to drift higher.
While these chart help with the overall bias of the market keep in mind they are not great at timing moves and should always be coupled with the daily and weekly underlying commodity charts.
Now, let’s take a quick look at what the god father of technical/market analysis shows in terms of market cycles and where I feel we are trading..... As he mentioned last week, a picture says a thousand words so why write when I can show it visually.
Read "Tis the Season to Look At Gold & Oil Prices!"