A short list of a few charts that follow one of the more manipulated weeks in the gold and silver pits.

Regards - VHF

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Unexpected responses in equity markets continue:

• Gold and silver moved lower despite weakness in the U.S. Dollar
• Small cap indices plunged and big cap indices (notably the DJIA) moved higher during a seasonal period when the opposite normally occurs.
• Big cap indices involving international companies moved higher despite Far East markets most involved with international trade moving lower.
• Strongest European equity market last week was Greece despite comments by Greece’s Prime Minister that Greece’s failing financial circumstances are the “tip of the iceberg”.

Fourth quarter earnings reports remain the focus. Only 16% of S&P 500 companies have released fourth quarter results to date. 65% of fourth quarter earnings reports released to date have exceeded consensus estimates. Unless earnings were a “blow out” (e.g. IBM, General Electric), responses were consistent: Traders were sellers on news (e.g. Alcoa, Apple, EBay, Northern Trust, Advanced Micro Devices, Freeport McMoran Copper & Gold, Google, Goldman Sachs, Union Pacific, Air Products, Bank of America, Schlumberger). Look for more of the same this week.

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Gold slipped another $16.90 U.S. per ounce (1.24%) last week despite weakness in the U.S. Dollar. Intermediate trend remains up. Short term support is indicated at $1,330.00 and $1,315.50. Ultimate support is at its 200 day moving average currently at $1,276.07. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

Gold equity indices (e.g. the Philadelphia Gold and Silver Index) fell another 5.60 points (2.72%) last week. It broke below support at 204.60 and currently is testing next support at 193.40. Short term momentum indicators turned lower three weeks ago and have yet to show signs of bottoming. Strength relative to gold turned negative three weeks ago.

Silver fell another $0.94 per ounce (3.31%) last week. It broke support at $27.97 on Thursday. Next support is at $25.02. Short term momentum indicators are oversold, but have yet to show signs of bottoming. Strength relative to gold has turned negative.

Despite weakness in gold and silver, platinum continues to trend higher. It gained $14 U.S. per ounce (0.77%) last week. ‘Tis the season for platinum to move higher!

Ditto for Palladium! It closed at another 2.5 year high. Strength relative to gold remains positive.

Copper fell 10.30 cents (2.33%) last week on China slowdown concerns. Resistance has formed at its all time high at $4.4980. Momentum indicators are trending down.

The CRB Index was virtually unchanged last week despite significant weakness in the U.S. Dollar Index. Short term momentum indicators are overbought and starting to roll over.

Gasoline slipped $0.03 per gallon last week after briefly touching a 2.5 year high. Short term momentum indicators are overbought and have rolled over.

Crude oil lost $3.01 U.S. per barrel (3.27%) last week. Short term momentum indicators have rolled over from overbought levels. Support levels are at $87.63 and $87.15. Its 50 day moving average currently at $88.20 also indicates support. A break below support levels implies downside risk to its 200 day moving average currently at $80.72.

Natural gas continues to respond to colder than average weather in North America. It gained another $0.25 (5.6%) last week to reach a six month high. Momentum indicators remain overbought.

The grain ETN added another $0.77 (1.43%) last week and closed at a 2.5 year high. Short term momentum indicators are overbought, but have yet to show signs of peaking.

The U.S. Dollar Index fell 0.95 (1.20%) last week. Intermediate trend remains down. The Index remains below its 50 and 200 day moving averages. The Index fell below support at 78.78 last week. Next support is at 75.63. Short term momentum indicators are trending down, but have yet to show signs of bottoming.

The Euro gained 2.46 points (1.84%) last week. Intermediate trend remains up. It broke above resistance at 134.72 last Thursday and now trades above its 50 and 200 day moving averages. Short term momentum indicators are trending higher, but have yet to show signs of peaking.

The Canadian Dollar slipped 0.61 cents U.S. last week. Intermediate trend remains up. Resistance may be forming at 101.58 cents U.S. Short term momentum indicators are overbought and trending lower, but have yet to show signs of bottoming.

The S&P 500 Index slipped 9.89 points (0.76%) last week. Intermediate trend remains up. The Index trades well above its 50 and 200 day moving averages. Stochastics, RSI and MACD recorded short term sell signals on Thursday. First downside risk during an intermediate correction is to its 50 day moving average currently at 1,238.85.

The Dow Jones Industrial Average added 84.46 points (0.72%) last week. Almost all of the gain last week came from one stock: IBM (The DJIA is a price weighed index and IBM is by far the highest priced component in the index). Honourable mention can be given to strength in General Electric on Friday. Intermediate trend remains up. The Average remains well above its 50 and 200 day moving averages. Short term momentum indicators are overbought. Strength relative to the S&P 500 Index has changed from negative and may be turning positive. First downside risk during an intermediate correction is to its 50 day moving average currently at 11,452.76.

The Russell 2000 Index plunged 34.39 points (4.26%) last week. Intermediate trend remains up despite a break below its intermediate uptrend line on Thursday. The Index already is testing its 50 day moving average. Short term momentum indicators have rolled over from overbought levels and have yet to show signs of bottoming. Strength relative to the S&P 500 Index no longer is positive and may be turning negative.

The TSX Composite Index fell 205.49 points (1.53%) last week. Intermediate trend remains up despite a break below its intermediate uptrend last Thursday. The Index already is testing its 50 day moving average. Short term momentum indicators have rolled over from overbought levels, but have yet to show signs of bottoming. Strength relative to the S&P 500 Index remains negative.

The yield on ten year Treasuries increase 0.08% last week. Yield remains in a tight seven week trading range between 3.249% and 3.556%. Short term momentum indicators are recovering from oversold levels.

Conversely, long term Treasury ETF prices fell $0.31 last week. They also remain in a tight seven week trading range (i.e. $90.16 – $94.70). Short term momentum indicators are trending lower from overbought levels.

The Baltic Dry Index fell another 69 points (4.80%) last week. An intermediate downtrend remains intact. Not a good sign for international trade!

The VIX Index rose 19.5% last week after bouncing from support near 15.3%. The Index moved above its 50 day moving average on Friday. Investor fears are rising.