Monday Is Chart Day

You can see that the US Dollar continues to swoon. It’s on the opposite end of what I like to call “The SeeSaw of Pain” with Precious Metals – as the dollar folds, gold continues to soar. Notice that silver is dragging right now – consolidating after its big run-up before the debut of the silver ETF. Short-term the easy money will be made in gold. Use the consolidation to get into the best silver stocks.

I’d look for crude oil to find short-term support today or tomorrow. It’s close to support, the January high. It is oversold, which should (but not always, or we’d all be rich) limit further downside.

Fundamental drivers: Global supply and demand are in balance. If nothing else, Venezuela and Iran are determined to have higher prices. When the price of crude gets low enough, they throw a scare into the market. In the intermediate term, hurricane season, with its potential impact on Gulf of Mexico oil and gas production, is around the corner.

The TSX-Venture, which tracks the type of small-cap Canadian stocks in Red-Hot Canadian Small-Caps, has consolidated over the last few weeks. That consolidation appears to be over, and the breakout is confirmed by momentum indicators. Hoist the Jolly Roger, and set sail for profits!

Check out my new gold and energy blog at MoneyAndMarkets.com