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Thursday, August 27, 2009

Black Gold, Yellow Gold, and the U.S. Dollar

A strong intraday bullish reversal following an early sell-off in equities has once again brought commodities-related stocks and the $USD into the spotlight. After another brief bounce out of technically oversold conditions, the $USD again failed to follow through on the gains and sits back near recent lows. Stocks in the precious metals and energy sectors have rallied back to key resistance levels and could be poised to break out if they manage a strong close. Gold has been fooling around for some time now, giving multiple false signals and frustrating bulls and bears alike. One thing that has remained consistent, however, is the overall market's continued bullish behavior. While there have been some nice short opportunites for nimble traders over the past couple of weeks, buying the pullbacks to support remains the game on the table for the for now.

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