[OpenFX] COT 4-29-11 [2 Attachments]

Sunday, May 1, 2011

[Attachment(s) from clay@claymarafiote.com included below]

Hi Traders,

I'm not sure if I was hearing things, bur I think I actually heard the USD singing the Beatles, "Can't Buy Me Love". Whether I did or didn't really isn't important because the VERY good news is we have a "strong dollar policy" (ahem, cough, cough, choke).

Okay, the COT charts are attached. You'll notice I've included two new entries, oil and the Mexican Peso. Just thought you might be interested (obviously, I am ;-) For the most part, the charts are indicating the same extreme conditions covered previously. However, the US Dollar Index is in a very strange place, as the small traders (not "specs" are int the same position as the commercials. Odd.

The shiny metals, gold and silver, made new highs last week and, in looking at the COT charts, while less than clear, there may still be room left to the north, especially with silver. Gold moved past the nearer term projections I included in a chart I posted that showed a confluence of technical levels around $1505. But, as I said last week, the daily trend line is still in place... which means the trend is still "up". Remember the definition of an uptrend is "higher highs and higher highs (for a downtrend, it's "lower lows and lower highs"). The next technical level I see is Fibonacci 2.618 extension near 1624 (see attached daily chart).

That's it for now. More later...

Great trading!

Clay

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Attachment(s) from clay@claymarafiote.com

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