A tough call for anyone this week unless they are a roller coaster engineer.

Cheers - VHF

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Gold added $5.30 U.S. last week. It remains range bound between $1,166.50 and $1,249.30. Weakness in the Euro and strength in the U.S. dollar have neutralized gold. Momentum indicators are neutral. Gold will move higher when the U.S. Dollar eventually rolls over.

Ditto for gold equity indices and ETFs!

Seasonal influences for gold equities turn positive in late July.

Silver has started to underperform gold. Last week, it fell 5.3%. Short term momentum indictors are trending lower from overbought levels.

Platinum slipped $34 last week. Support appears to be forming at $1,489.90 and near its 200 day moving average at $1,494.49. Short term momentum indicators are oversold and are showing early signs of bottoming.

Copper slipped 3.4% last week and is testing support at 290.05. Short term momentum indicators are oversold and continue to show signs of bottoming.

The U.S. Dollar broke above short term resistance at 87.46 on Friday on news that a major French bank may be in trouble and after comments by Hungary’s Prime Minister that the Hungary’s economy is in a “grave situation”. It gained 1.58 last week. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Conversely, the Euro broke support at 121.74 on Friday to reach a four year low. It lost another 3.04 last week. Short term momentum indicators are oversold, but quickly lost early signs last week of a bottom.

The Canadian Dollar slipped 0.69 U.S. last week despite news that the Bank of Canada raised its overnight lending rate. Support is indicated between 92.18 and 93.15. Short term momentum indicators are oversold and continue to show early signs of bottoming.

The S&P 500 Index fell 24.53 points (2.25%) last week. Intermediate trend remains up. Support may be forming at its May 25th low at 1,040.78. On Thursday, the Index found resistance at its 200 day moving currently at 1,105.61. Short term momentum indicators are oversold and continue to show signs of bottoming. The sharp decline on Friday on higher volume was disturbing.

The Dow Jones Industrial Average fell 204.66 points (2.01%) last week. Intermediate trend remains up. Support may be forming at its May 25th low at 9,774.48. On Thursday the Average found short term resistance at its 200 day moving average. Short term momentum indicators are oversold and continue to show early signs of bottoming. Strength relative to the S&P 500 Index remains positive.

The TSX Composite Index slipped 101.83 points (0.87%) last week. Intermediate trend remains up. Support may be forming at its May 25th low at 11,179.97. Short term momentum indicators are oversold and continue to try to bottom. Strength relative to the S&P 500 Index remains positive.

The CRB Index fell 2.3% last week in response to strength in the U.S. Dollar. Short term momentum indicators are oversold and continue to show signs of bottoming.

Crude oil fell 2.9% last week. Support could be forming at $67.15. Short term momentum indicators are oversold and continue to show signs of bottoming.

Unleaded gasoline slipped 2.0% last week. Support may be forming at $1.891. Short term momentum indicators are oversold and continue to show signs of bottoming.

The TSX Energy Index added 0.7% last week thanks mainly to strength in natural gas prices. Short term momentum indicators are oversold and continue to recover. The sector historically peaks with the CAPP conference held this year from June 14th to June 16th.

Natural gas added 8.0% last week on news that Obama is starting to favour gas exploration and development and news that hurricane season in the Gulf is expected to be more active this year. Short term momentum indicators continue to recover.

The VIX Index rose 20.43% on Friday on Euro fears.

The Baltic Dry Index slipped 5.7% last week on Euro fears.

Despite weakness in equity markets last week, Goldman Sachs (a U.S. equity sentiment indicator) continued to show technical signs of bottoming.