technology of the future - tuesday, page-6

The quiet slide in iron ore and coal prices came to abrupt end overnight as very sharp falls made the headlines this morning. Cash copper declined further as well despite the plunge in that market on Friday. Crikey this is all getting serious but going by previous history, once the great unwashed are aware of it, the fall is probably getting towards the end.

JG mentioned the Aussie dollar. This is actually a market that I am very interested in at the moment because I thought the recent decline in the Aussie against the US dollar could have been the right shoulder of a head and shoulders bottom. Last week’s rally took it above the neckline so the rather muted response to so much bad news took my eye as well and I wonder if we are merely just pulling back to the neckline of this head and shoulders bottom.

This of course then leads on to the trend of the US dollar which is so important to the trend of the precious metals – a lower US dollar – higher gold prices. So it is possible that we will get an early signal from the trend of our dollar.

Grain prices, which have had such a huge rise this year, rolled over overnight. Oil also weaker and has now broken its recent uptrend.

Two trading sessions in the SPX with less than a point difference in the closes. Unsure on it all but the RUT looked a little better at the close.

What happens in New York will obviously be the key as to whether we are forming a double top here. Need a bit more time.