"Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. "

GOLD & THE DOLLAR? I continue to hear how the Dollar will collapse and that gold will go to the moon. What it insinuates is that there is a correlation. Yes, there is. In reviewing their "peaks and valleys" since 2008, they tended to do the opposite. I took as a reference new highs in the gold since that time. It was interesting to note they have had an opposite correlation but that all changed in 2010. Let's take a look:
March 2008 - Gold peaked. The Dollar bottomed.
October 2008 - Gold bottomed. The Dollar peaked.
December 2009 - Gold peaked. The Dollar bottomed.
February 2010 - Gold bottomed. The Dollar had already bottomed.
June 2010 - Gold peaked. The Dollar peaked.

Since 2010 they have not been doing the opposite. Has something fundamentally changed? Does this mean anything? We don't know but it suggests to me that something fundamental could have changed and that we should no longer assume their old correlation to be written in stone.

�@The Market Update is designed to not only help you learn how to trade but also improve your trading approach. By reviewing technically all the major markets as well as give trade suggestions that include the reasons for the trades, you're able to follow and/or compare my work with yours. Or, if you don't have the time, as many don‘t, simply use my guidelines for placing your own trades.

EMOTION is more your enemy than any market will ever be. My Market Update employs a trading plan that a trader can understand and trades that have reasons so that a learning process evolves - helping you combat emotion and establish discipline.

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TRADE ALERTS: Important information regarding placement of trade alert orders:
1. They are placed for the day only (not the night session). All orders are placed in the electronic markets.
2. They are placed on a buy stop or sell stop basis. That means the market must rally up to the stop price to go long and/or sell off down to the stop price to short.
3. All orders are good for that day only.

Sell September mini yen. Sell 113.61 stop. Protective stop 115.23. Potential projection 111.00.
Reasons for the Trade:
1. On both the monthly and weekly charts the yen is selling off from a previous major resistance area.
2. The weekly chart triggered a preliminary sell signal this week.
3. On the daily chart, the yen violated the 144.00 support today. That is negative.
4. On the daily chart, the yen violated the 20 day ma today.
5. On the daily chart, a buy signal triggered on the 22^nd was negated the very next day. Normally when a market does so, it continues to follow through in the new direction.

SEPT COPPER: I thought the rally in copper would have more to it. Instead it has stalled out around 323.00+ approximately. It has some pretty decent support under it but it may just be near term over bought. Just watching. Closed 320.65, down 1.65.

AUG MINI GOLD: It finally triggered a sell today and made a low at 1156.90. Move stops down from 1204.50 to 1187.00. Closed 1158.00, down 25.10.
Position: Short 1178 (7.27).
Projection: 1130.

SEPT MINI SILVER: I tried to short silver but it never reached my price. I did not suggest it for today and wish I had! It sold off to 17.580. It is in a support area but should not hold. Closed 17.626, down .574.

ENERGIES, CURRENCIES & BONDS:

SEPT MINI CRUDE OIL: I took profit in the crude on Friday even though it did not reach my projection. After being almost stopped out, it rallied aggressively on Thursday. On Friday it started to sell off. I took what profit there was. Today it sold off down to 76.79. It is pushing into some support. Closed 77.50, down 1.48.
Position: Long 78.150 (7.21). Exit 78.750 (7.23). Profit $245 (-comm&fees).

SEPT MINI JAPANESE YEN: A trade could be developing. Se Trade Alert for details. Closed 113.87, down .130.

SEPT SWISS FRANC: An inside day yesterday triggered a sell today. It sold off to the 94.00 support. It is also now under the 20 day ma. Selling off under 114.00 and closing under that support area would be very negative. Closed 94.40, down .96.

SEPT DOLLAR INDEX: It finally reached my potential at 82.000. Today's low 81.970. There could be more to it as suggested in my last Update. So far the attempt at a rally has been pretty pathetic. Just watching. Closed 82.328, up .086.

SEPT MINI EUROCURRENCY: It continues to be in an uptrend and is attempting to get over 130.000. It has yet to close above that price level. Just watching. Closed 129.880, unchanged.

SEPT CANADIAN DOLLAR: In my last Update it looked as though it could test 97.00 again and even do better. It did. It reached 97.45 today. It has been trading into a pennant and today it reached the down trend line of that pennant and backed off. The last time it did so, it had a sell-off to 93.60. If it does likewise this time, it could reach that target at least. A trade could be developing. See Trade Alert for details. Closed 96.43, down .20.

SEPT AUSSIE: Both long term charts have buy signals even though the daily chart looks like it could be losing steam, so to speak. Just watching. Closed 89.65, up .02.

SEPT BONDS: They finally triggered a sell on Friday and continued to follow through today. The current low 126.07. Move stops from 127.18 down to 127.11.  Closed 126.11, down 28.
Position: Short 127.27 (7.23).
Projection: 124.00.