I’ve been watching the price of Gold over the last 3 weeks or so and one thing has become perfectly clear.  The outlook for Gold (and Silver) is clear as mud!  Stocks have oved sharply higher since the the March lows, the Dollar has tumbled along with Bond prices, and Gold has plodded along trying hard to not attract any attention.  In the process, the price of Gold has retraced nearly 75% of the break from the JUNE highs to the JULY lows.  To be more precise, the market is now testing the 76.4% Fibonacci retracement level at 971.70.  Let’s examine all of the components that are driving these markets and see if things are really as murky as they seem.

First, let’s take a look at the correlation between the Dollar and Stocks.  I’ve been telling everyone that will listen to me that the Stock markets will move higher as long as the Dollar continues to move lower.  On what do I base my statement?  Allow me to present my case.  The current Stock market rally (bear market rally, I might add) began on March 6th when the low was set.  The Dollar, depending on which currency you compare it to, peaked somewhere between March 4th and March 9th.  Since that time the Dollar has been in decline and stocks have been rallying sharply.  Bond yields have been rising (with prices declining) and Commodities have been on a tear.  Folks, this ain’t rocket surgery here!  These are very simple market correlations.  But these correlations don’t last forever.  John Murphy wrote a wonderful book on Intra-Market Technical Analysis, one of my all-time favorites.  It looks at the same correlations that I have mentioned here and how well those correlations hold up over long periods of time.  Our time frame for now is the last 4 months.  The correlations are quite clear.  Now the question is – where do we go from here?  Unfortunately, this is where things get a little murky.  Here’s my take on where we stand today.  I think that the legislation regarding economic “stimulus” that has come out of Washington has been a joke.  The Commercial and Residential Real Estate markets remain mired in depression as massive foreclosures continue to weigh on prices as more and more people lose their jobs.  There are some signs that a bottom has been made but I’m not one of those who believe that theory.  Band-Aid measures like “Cash for Clunkers”, bailing out the Auto companies and the Financial companies and saddling the taxpayer with more and more debt will not get the job done.  Until something happens with the housing market this economy is going NOWHERE!!  If our representatives in Washington had a clue they would raise the credit for home purchases to $15K immediately for 2 full years.  This would light the much-needed fire under the market and clear out the inventory in that 2 year period to a normal, healthy level.  Once that’s accomplished we’ll see confidence come back to the consumer and the rest will be history.

I don’t know where Precious metals prices are going.  I’ve said that before and I’m saying it again.  But I do know that the economy is still sick and this stock market rally, though it may make us feel good temporarily, will eventually fail.  It will end when there are more people that will be hurt by stocks going down.  That’s the way markets work.  When the last holdout has just gotten off the phone with their broker the market will then head lower.  If that scenario doesn’t make you pick up the phone (1-800-605-1792) and buy some Gold and Silver (or Platinum and Palladium) then you are either sitting on a large stash already or you’re not serious about preserving your own wealth.  Believe me because I’ve seen it a thousand times.  We can lead you to the watering hole but only you can decide whether you want to drink.  If you haven’t started your Precious metals accumulation plan then TODAY is the best time to start.  Call our professionals advisers at 800-605-1792 for a free quote.  It could be the most important call you make this year.

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

I figured it was time to update the blog even though there’s little good news in the Precious metals markets these days.  You can thank the almighty Dollar for that.  The bad news is that it looks like Gold is headed for a test of the 200-day MA at around 878.50 with the possibility of a return to the April lows.  This proves one very important point.  Markets sometimes go in a direction that you least expect them to.  Under the current economic scenario that we find ourselves in I would have expected Gold to transition from an investment vehicle to an alternate currency.  So far, that has not occured.   There’s the bad news.  Now for the good news!  As they say, it’s always darkest before the dawn!  And Gold will shine again.  Count on it.  The crater that our economy finds itself in is growing and that means far more pain in housing, the credit markets and jobs is about to be felt.  And, eventually, we will see one of two things – A) a decoupling of the price of Gold and the Dollar or B) the Dollar will collapse and Gold will move to all-time highs somewhere north of $2500 an ounce.  I favor the latter scenario but either is plausible and the end result will be the same.  And don’t forget the Inflation monster that is lurking out there on the horizon.  That could be the straw that breaks the camel’s back.  A no-growth economy coupled with inflation that we haven’t seen in decades.  There’s a one-two combination that would put us into a spiral from which we may never recover.  I say that because we’ve just added several trillions of dollars to our debt load in this country and it’s impossible to service, much less pay back the debt, in a no-growth economy that is struggling to keep people working.

That’s it for the doom and gloom.  Let’s talk investment strategy.  First, watch the Dollar.  Since the EURO topped out in early June the EUR/USD rate has traded in a fairly tight range between 1.4337-1.3747.  The EURO would have to break out to the downside before we would see my worst case scenario for Gold which is a retest of  the April lows at around $865.  I give this about a 20-30% chance of actually happening.  If you already own some Gold coins such as American Eagles or Canadian Maple Leafs, then hold on to them.  If you are looking to expand your holdings or haven’t yet begun your “alternative currency” accumulation account then your in luck because Gold is about to go “on sale” at a very attractive price.  But let’s not forget that, even though the Dollar seems unwilling to move lower at this time that doesn’t mean it won’t.  Buying on dips and dollar-cost averaging is always a good strategy in uncertain times like these.

I will keep you updated through this blog or on Twitter where you can find me at www.Twitter.com/bulliondotcom.  As always, you can also email me at daledoelling@bullion.com if you have any questions specific to your own personal situation or you can call our Precious metals advisers at 1-800-605-1792 for current prices on Gold, Silver, Platinum or Palladium.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

For those of you who would like to follow my market commentary on a real-time basis you can follow me me on Twitter.  You can interact with me during the trading day and see exactly what I’m doing with my own account in the Precious metals markets.  Just go to www.twitter.com/bulliondotcom and follow me.

Gold and Silver were due for a pullback and yesterday Gold came within a whisker of my downside target of 917.00 basis the August contract.  But I really didn’t like the action in the market because I was looking for a real washout kind of trade that would finally have the weak longs grinding their teeth and being forced to throw in the towel.  I advised you previously that the market was probably heading for a down period and I had been SHORT during this retracement.  When it became obvious that the market wasn’t going to reach my target of 917 yesterday I reversed my position and got LONG AUG GOLD at 921.50.  The market is trading at 923.10 as I write this blog entry.  But here’s the kicker!  The market broke all the way to 913.20 overnight!!  That’s the kind of action that I was looking for yesterday that never materialized.  I feel comfortable in advising you, our readers, to BUY GOLD and SILVER at these levels.  We may not see these markets at these levels for a long, long time.  This is exactly the kind of move that I was hoping for because it looks like those weak hands have folded their cards and it’s time for the markets to turn and head higher.  The flip side to this would be if the AUG GOLD contract were able to close below 917.00 on two consecutive sessions.  This would be extremely bearish and could push Gold prices back to the April lows at 867.50.  I give this scenario about a 5% chance of occurring.  I put the odds that the market has bottomed right here at 75-80% and those are the kind of odds that I need in order to commit to a trade and I’m committed to this trade now.

If you have been thinking of purchasing some GOLD or SILVER BULLION, please call our toll-free hotline and talk to one of our professional advisers who will provide you with the latest prices on Precious metals.  Opening an account takes only a few minutes.  Pick up the phone and call 1-800-605-1792!  You’ll thank yourself for doing so because this is an opportunity to buy GOLD and SILVER at prices that we may not see again.

As always, if you have any questions, follow me on Twitter, send me an email at daledoelling@bullion.com or call me at 888-453-4614, ext. 2.  I look forward to talking or “Tweeting” with you.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

In my blog entry on 6/3 I stated that it looked like we might have come to the end of the line for the rally in Gold and Silver primarily due to the surge in the US Dollar after the better-than-expected, but still dismal, employment report was released on Friday morning.  Both markets were in overbought territory so they were just looking for a reason to correct.  Obviously, they found it in the dollar reversal.  So today, we find AUG GOLD searching for support and, with an intraday low of 943.80, the market came within a whisker of my initial downside target of 941.00.  Now the question is, can Gold hold this major area support?  The answer will come with the passage of time.  My professional opinion is that the rally in the  US DOLLAR will be short-lived but may still have some legs.  Gold and Silver, once the retracement has run its course,  should continue to provide superior returns to stocks and bonds but, more importantly, provide a much better way to protect your personal wealth.  Unfortunately, both Gold and Silver have gone from overbought to just neutral and may need some more work to the downside before a real bottom is found.  I’m good with that.  This is very healthy for both Gold and Silver and will allow these markets to continue to press higher.  I expect Gold to make new all-time highs in the next month and Silver should eclipse the February highs on the back of the next rally in Gold.

If you have been thinking about buying some Gold or Silver bullion coins, all you need to do is call our toll-free number (800-605-1792) to place your order.  You can speak with a professional adviser who can explain the easy process of opening your account and completing your purchase.

As always, if you have any questions about the markets, trading, or you just want to chat, feel free to call me at 888-453-4614.  If I can’t answer your call immediately I will return it as soon as I am available.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

This is being written at 2:37 PM Eastern time on June 3, 2009.

Some technical damage was done to both the Gold and Silver markets today as the Dollar strengthened significantly pulling most commodities lower.  AUG GOLD closed the open outcry session at 965.60, down 18.90 or nearly 2% on the day.  Should the market close below 963.00 on Thursday then the short-term trend will be DOWN and the possibility of further selling pressure will increase substantially.  Support lies at the 941.00 area which could be reached by the end of the week if the pace of selling is sustained.

JUL SILVER closed at 15.31, down $0.645 on the day or better than 4%.  A close below 15.17 will turn the short-term trend in Silver negative and put support at 14.19.

Some near-term strength in the Dollar was not unexpected considering the thrashing that the greenback has taken over the  past 3 months.  And understand this.  I’m not recommending that anyone get SHORT Gold or Silver at this time.  I’m only putting out this alert because these markets are at important levels that could push them lower in the near-term.  I’m still extremely BULLISH for the long-term and I won’t be surprised if we look back at this period of weakness and realize what a great BUYING opportunity it was.  So, be patient and I’ll send out an update at the close on Friday.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

I’m beginning to wonder if there’s anyone out there that isn’t BULLISH on the Precious metals and that makes me very uncomfortable.  Bill Fleckenstein, President of Fleckenstein Capital and a man for whom I have a great amount of respect, wrote an article about Gold Monday for his Contrarian Chronicles column on MSNMoney.com.  I recommend that you paste the following link into your web browser and read his latest commentary- Why this downturn is different.  Not only will you be able to read his article but there are a couple of links to some interesting stories about Gold.

My belief that Gold and Silver will preserve your wealth is based on a couple of very important economic events that are taking place today.  I believe that rising unemployment and the continuing decline in housing prices are situations that will eventually lead to lower stock prices and an increase in the anxiety level of the average investor which will lift Gold and Silver to new highs.  Mr. Fleckenstein also believes that stock prices will eventually move lower.  We are both very bullish on Gold.  I’m just a little cautious here because there doesn’t seem to be a dissenting voice when it comes to Precious metals.  Bill and I are contrarians and I’m sure he’s having the same thoughts as I am regarding the lack of skepticism regarding the latest rally in the Gold and Silver.  The one thing that I do like about the latest move in Gold and Silver is that it’s been very steady with little volatility along the way.  When Copper made new all-time highs a couple of years ago it moved in precisely the same pattern.  I believe this will be the case for Gold.  A gradual ascent to new all-time highs.  Once those new highs are achieved there’s a very good chance volatility will increase dramatically because a lot of momentum players will be waiting to jump on the bandwagon and that will mean a breakout that could be like fireworks on the 4th of July!  The fact remains that we still have resistance at the March highs that is evident on the chart below.  With a $100 an ounce rally you sometimes look for a bit of a retracement to take some pressure off the market.  This may be a case where waiting for that retracement before taking a position could be very costly.

Now, the question I have for you is “What have you done to secure your wealth?”  All of us here at Bullion.com are very proud of the fact that we can now offer you a direct toll-free number for all of your Precious metals investment needs.  Have you taken the time to call and talk to one of the professionals that deal in these markets on a daily basis?  If not, then I only have one other question.  What are you waiting for?  It’s never a good idea to chase markets and I believe that’s what will be taking place very soon.  Markets are funny things.  They try to lure you into thinking that if you just wait a little longer you’ll get a better price on your purchase.  Unfortunately, most people just keep waiting for that “better price” and they miss the move altogether.  My advice is, don’t wait!  BUY now!  We may never have this opportunity again.  Here’s a recent communique from our Precious metals dealer regarding current prices on Gold and Silver -

SELLING GOLD BULLION COINS (common dates)

QTY

500                                       1  Troy OZ US GOLD EAGLES          SPOT + 4.00%

500                                       1 Troy OZ GOLD MAPLES                 SPOT + 3.75%

SELLING SILVER BULLION COINS (common dates)

5000                                   1 Troy OZ SILVER EAGLES              SPOT + $1.95

$25.00 Delivery Fee on less than 20 coins.

100 Coins or more – Call for bargain pricing!  (Prices are subject to change.)

There you have it.  For today’s Gold and Silver prices call 1-800-605-1792.  And remember, any questions that you may have on the markets should be directed to me at 888-453-4614 or to daledoelling@bullion.com.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

Last week’s market action saw a breakout in the June Gold futures as Gold made a new one-month high at $926.50 on 5/7.  I was all ready to put out an alert to BUY but I needed to see confirmation that the new high would hold and, of course, it didn’t.  Don’t get me wrong here.  I’m still very bullish on the entire Precious metals complex and here’s why.  The June contract closed back above the 20-day MA on Tuesday and has remained there.  That’s a big positive for the longer-term outlook.  Looking at the market from a short-term perspective, the hourly chart just shows a market that simply can’t gain any traction.  With the Dollar having lost 10 cents to the Euro in the last 2 months, it’s a bit puzzling that Gold hasn’t had a significantly larger move than it’s been able to generate.  But I’ve never been sold on the whole Dollar/gold argument and the last 2 months are a perfect example of why I don’t completely buy into the correlation between the Dollar and gold.  On March 11th, 2009, the Euro opened at 1.2681 and June Gold opened at $897.80.  The Euro has gained just shy of 8% vs. the Dollar while the Gold price has gained slightly more than 2% during the same period.  Hardly a rousing example of as the Dollar goes, so goes Gold.  Silver, on the other hand, seems to have taken the upper hand as its gain over the same time frame was 11.2%.  I’ve been advocating Silver for quite some time and I still believe that it will continue to outperform Gold on a relative basis as we move into the summer months.  A breakout above the February highs would not surprise me in the least.

I would almost go so far as to say that a retest of the February highs is a foregone conclusion.  This market has had 7  strong sessions to the upside and, with the only resistance having been overcome, there’s only one hurdle left before Silver can set its sights on $20.  So, if you have any questions about my position on Silver let me remove any ambiguity.  I’m a “raging bull” on Silver and, should the market take out $14.64 on a closing basis it should launch an all-out assault on the $20 target.  Which leads me to my next subject.

So many of you have written to us and asked two very simple questions – “What is the best form in which to buy bullion?” and “How do we go about buying bullion for our investment portfolio?”  We now have the answer to both of those questions.  It’s Bullion.com!  The fact of the matter is, the Precious metals business is fraught with landmines of which the vast majority of investors are totally unaware.  So we came up with the only logical solution.  We sought out a bullion dealer with a reputation that is second-to-none in the industry to handle our visitors’ and subscribers’ needs.  Whether you are looking to purchase a one ounce American Eagle Gold coin or 100 one ounce Canadian Maple Leafs, Bullion.com will now be able to provide you with a direct link to our bullion dealer.  We at Bullion.com believe that this is just a natural progression to what was our original mission -  to provide a comprehensive resource for Precious metals investors worldwide.  We did the due diligence so you won’t have to.  So, if you subscribe to our newsletter then you will receive a special invitation to try our new service as soon as it is available.  If you aren’t a subscriber then go to Bullion.com and subscribe to our newsletter or you can check back with us beginning next week.  We are very excited about this new service and, once you have tried the service, we will be asking you for an evaluation of the service that was provided so that we can insure that it is the best the industry has to offer.

There you have it.  Bullion.com is not only your #1 Precious metals resource for information on the markets but it’s now your source for buying bullion through our bullion dealer.  Just call our Bullion.com toll-free number, 1-800-605-1792, to speak to a representative for pricing on any type of bullion that you may be interested in.   It’s just that simple.  And don’t forget to email me at daledoelling@bullion.com if you have any questions regarding the Precious metals markets.  If you would prefer to speak to me personally you can call me at 888-453-4614, ext. 2, during normal business hours.  I look forward to hearing from you.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

Anyone who thinks that we can sound the all-clear when it comes to the economy, please raise your hand!  Now, if you truly believe that then please send me an e-mail and explain how you have come to that conclusion because I am amazed at all of the talking heads that seem to believe that the light at the end of the tunnel is NOT a freight train coming the other way.  The equity markets seem to believe that as well.  I certainly expected a decent bear-market rally.  And that’s what we got over the last six weeks.  But , in my opinion, the longer this one goes the bigger the decline is going to be when it ends.  And that’s why I want to be LONG Gold before the cracks in the stock market dam become evident.  Gold has certainly had its problems over the last few weeks.  The April low of $865.00 seems to be a strong area of support.  With the June futures contract trading higher by about $15 today and the weakness in the stock index futures testing major support we could see a major turn of events this week.  The last time Gold closed above the Bollinger Bands moving average was on April 1st.  In case you are looking for a very good technical indicator to watch just take a daily chart of Gold and add Bollinger Bands to the chart.  The MA is a tremendous indicator for where the market is today and where it will probably head in the future.

I can trade any market with just this one indicator and have a decent chance of making money doing it.  Currently, the Bollinger Bands moving average on the daily JUNE Gold chart is just slightly above the $886 level.  Today’s intraday high is $887.10.  The market really needs to post a close above the MA to give traders and the Gold market a technically-based shot in the arm which could push the market back above $900 and then, ultimately to new all-time highs.  I know there are a lot of people out there that think that Gold is dead in the water and advocate that you sell all rallies.  I’m not one of those analysts.  They may be right but I don’t think so.  I think new highs are in the offing and that we should take this opportunity to take positions at these prices because there’s nothing more frustrating than missing the trade and having to chase prices higher.

Good trading,

Dale F. Doelling, Chief Market Analyst
info@Bullion.com
1.888.453.4614  Ext 2

The information and comments contained herein are provided by Secure Future Financial Corporation (”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

I talked about the intermarket relationship between stocks and Precious metals last week and pointed out that the NQ (Nasdaq 100) may have been putting in a quadruple top.  That top is history, for now.  You see, markets have a funny way of hurting as many people as they possibly can.  I was focusing on the NQ because it has clearly been the best performer in 2009 of all the major stock indexes.  The performance of the S&P and the DOW pales in comparison.  Getting back to my analysis, the high in the June NQ had been right around the 1285.00 level in January, February and again in March.  On Thursday the experiment blew up as the NQ made an intraday high of 1310.75 and, more importantly, closed above the 1300 mark.  Momentum traders got on board the breakout train and that’s probably what propelled the NQ to its high of 1327.50 in early trading this morning.  But wait just a minute here!  The market is trading 19 handles lower as I write this and my expectation for a peak in the first 3 days of this week may just come to fruition.  This could be the spark that lifts Gold and Silver off the mat and back in the fight.  The following chart on May Silver shows that the low that was made back on 3/18 (11.89 intraday) was a panic situation that provided strong support for this market over the longer-term.  If stocks should begin to tumble, and this morning’s action is looking weak, then Silver may be the market to be in.  Silver could quite easily rally back to the February highs if investors start to smell a trap in the equities arena.

So, to recap, I remain SHORT the NQ and, should the NQ be able to break support at 1293.25 on a closing basis, chances are that the Precious metals will have already shown signs that the decline is complete and a new leg up is underway.  Keep your eye on the MAY SILVER contract as we progress through the week.  If the market should break further and begin to approach the $12.00 level I’ll simply step in and BUY using the previous low at 11.89 as my stop on a closing basis.  This could be the BEST opportunity for being long SILVER since the October lows at 8.65.  You need to be ready to act because, as we all know, the best laid plans are worthless without action.

Good trading,

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation
(”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and
options trading involve significant risk of loss and may not be suitable for everyone.
Therefore, carefully consider whether such trading is suitable for you in light of your
financial condition. This report includes information from sources believed to be reliable
and accurate as of the date of this publication, but no independent verification has been
made and we do not guarantee its accuracy or completeness. Any reproduction or
retransmission of this report without the express written consent of Secure Future Financial Corporation
is strictly prohibited. Again, the information and comments contained
herein is provided by SFF-CORP and in no way should be construed to be information
provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

The NQ futures contract (NASDAQ 100) made a quadruple top overnight when it rallied to just shy of the previous high made on 2/10 of 1285.25.  This morning’s high was 1284.00 and, assuming the market doesn’t break out and close above 1285.25, this is as close to a sure bet as you’ll get when it comes to trading the markets.  I’m SHORT the NQ and will remain short until the NQ closes above the resistance that I mentioned.  How does this affect the Precious metals markets?  Let’s look at Gold for a moment.  We just had a higher initial jobless claims number this morning and the 4-week moving average rose again aslo.  Does this sound like an improving economic condition to you?  I’m sure you’ve heard the joke “How do you know when a politician’s lying?  His lips are moving!”  One of the President’s biggest campaign promises went up in smoke yesterday when the largest tax increase in tobacco taxes took effect despite Obama’s promise not to raise taxes of any kind on families earning under $250,000.  This is one tax that disproportionately affects the poor, who are more likely to smoke than any other class of Americans.  Nothing has changed!

It’s just after 8:30 AM on Thursday and the April Gold contract is trading down $12.00 at 914.10.  I continue to like Gold in the low 900’s but with the Employment report set to be released tomorrow morning at 8:30 AM I am compelled to wait until that number is released before I commit to the long side once again.

If you look at the daily chart you can see that the %R oscillator is showing that the market is in a bottoming process.  This means that tomorrow’s number could put Gold on another rocket shot trajectory or it could mean that the market will break down to the previous lows of 3/18 or somewhere south of $900 and then turn and rally.  There’s really no way of telling unless you happen to be the one that compiles the Employment numbers for the Labor Department.  Trading in front of the biggest economic report of the month is gambling, not trading.  The facts remain the same on the economic front.  We ain’t out of the woods yet by any stretch of the imagination.  As a matter of fact, we’re still trying to figure out which way is North.

Let me leave you with this little snippet from P.J. O’Rourke, my favorite political satirist and Libertarian, when he was asked to evaluate President Obama’s performance so far.  “A dorm room bull session is in control of our country.  Obama wants to change everything at once with no understanding of what those things are, no idea of how change happens in the real world, and no notion of the consequences of his ignorance.”  I couldn’t have said it better myself!

Good trading,

Dale F. Doelling, Chief Market Analyst

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