Heard On The Street

Announcements:

1. I will be vacationing from June 28 - July 12 and the last blog post will be on Monday June 27, 2011.  Regular post will resume on July 13.  

2. During my analysis of Oil I failed to mention that the charts used that pertaining to my comments were "forward contracts " of CL3-057 because of limited date on the QM mini Gold forwards.

As I reviewed the markets on Saturday morning I realized that many are on the brink of big moves. Volatility has picked up and as traders we welcome it. In this weeks video edition of Heard On The Street my hope is to identify the key areas where significant opportunities may exist. As always, these are my opinion and not a trade recommendation. You should read my complete Risk Disclaimer and Disclosure Statement contained on the left hand side of the blog.

The markets that I'm covering are: Emini SP futures, Corn, Wheat, Soybeans, Gold, CRB Index, Gold, Oil and the EUR-USD.

Best of Trading

Chart of The Day: $AUD-USD

At the monthly chart level, the $AUD-USD appears to have completed Grand Supercycle w.IV where the internal structure breaks down in a w.(c) = w.(a) at 1.1086 relationship. A loss of .9705 would confirm that the top is in, clearing the way for a massive impulsive move to the downside.

This view aligns commodity currencies, like the Aussie Dollar,  to the recent strength in the USD (not shown) and the most recent weakness in the CRB Index.

Australia is a large exporter of gold, copper and wheat  and there is a high degree of correlation between the AUD and these markets. With the wave count calling for a decline in the currency against the USD, one would expect that the price of correlated markets to also decline. Needless to say, each of the corresponding commodity charts are bearish.