Market Update 20 Jul 2012


Last week showed many gains and few losses.  Once again commodities lead the way, with crude oil up 6.7% and coffee up 2.6%.  Silver and copper were each down 0.3% – the largest losses for the week.  Gold and silver mining stocks also suffered, falling 0.2% for the week.

Currencies were all up, with the Canadian Dollar performing best, up 2.1%, followed by the JPY up 1.8% and the EUR, up 1.7%.  Although the CAD and EUR did well this week, they are both down from a year ago; the USD and JPY are up slightly over that time period.

Bonds and major stock indexes also rose, with the long treasuries up 1.9% and the S&P 500 up 1.7%.  TLT, the long treasury ETF, remains in the resistance zone between 2.5 and 2.6 grams.  I am currently out of this position, waiting to see if it will break above or below.  Still, TLT is the only security tracked here that is up strongly over the last year (up 41.2%).  It remains to be seen if there is more upside to these long bonds.  Eventually, short TLT and long HUI will be a great trade, but how soon?

Table of prices in gold for week ending 7/20/2012

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