US Dollar Weakness Powering Gold and Commodities Higher

While not as reliable after a long holiday weekend, the market condition scans are showing a bias to the upside today with moderate energy.  The market bias indicators are neutral.  Futures are positive this morning along with the DAX indicating a positive open.

Pre-market US Dollar weakness is leading to a rise in gold which has breached the $1000 barrier.  Canadian dollar is also on the rise in response to the US Dollar.  The price action is looking speculative and steep.  Be cautious and do not chase price.  While many analysts and so called gold bugs are suggesting that the rise in gold is due to inflation, this may not be entirely true.   Research done by Fisher investments has not found a high correlation between inflation and the gold price.  Remember, just because something is widely believed to be true, does not mean it is.  Many so called truths about the market are not proven.

All through this year past cyclical and seasonal patterns in the stock market have not held up well, or followed expectations.  Do not be surprised if September does not follow expected seasonal patterns. 

Index	Change	%Change	Level	Phase
TSX	+95.98	+0.88%	11017.47	Bullish
DJIA	+96.66	+1.03%	9441.27	Bullish
Nasdaq	+35.58	+1.79%	2018.78	Bullish
SP 500	+13.16	+1.31%	1016.40	Bullish
Russell 2000	+8.01	+1.42%	570.50	Bullish
NYSE	+90.53	+1.38%	6637.13	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a positive bias

Energy: moderate

 Primary Trend: sideways

Sector	Phase
Consumer Staples	Bullish
Healthcare	Bullish
Technology	Bullish
Utilities	Bullish
Energy	Bullish
Financials	Bullish
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart