BIG NUMBERS

Yes it is July and a holiday week but things are happening. $100 Oil, for the first time this year. Ah, just blame it on the Middle East! Now that we have cleared 100, the volatility will most definitely increase and OIL will be the headlines again. Take a look at this chart, IMPRESSIVE.

Now that we are above that threshold, we have the next BIG number to watch on Friday, the all important US jobs report. No matter what the number, get ready for the usual spin, sorry but I will enjoy my long weekend and really am not going to get all that worked up over the outcome. With that said, let us take a look at the US equity markets.

Yes we have gotten a bounce over the past week and appear to be running into resistance at 15000 in the Dow and 1620 in the S&P. My opinion is that we are starting to roll over again to the downside but a decent job number could change that view real quick. Enjoy the holiday while you can, that's my advice!

I am impressed with the US dollar but again I am watching at this point and salivating that we may have some great buying opportunities in the major currencies against the dollar. As for GOLD, yes an impressive bounce from $1185 all the way through $1250 but the chart still needs some time to repair and typically GOLD does not do well during the summer time. If OIL does keep above $100, the shorts should start to rethink their strategy. Maybe just maybe $100 OIL is what us METAL bulls need to give us some help!

Enjoy and have a safe holiday
Martin