This morning, the chairman of the Federal Reserve, Ben Bernanke, is testifying in front of the House Financial Services Committee. Chairman Bernanke has hinted that further stimulus could be needed if the market starts to slump. Most of the leading commodity stocks have jumped higher on this news. Copper, steel, iron ore, gold, and silver are soaring higher on this news.
The SPDR Gold Shares (NYSE:GLD) have soared higher by $1.40 to $154.17 a share. This is a new all time high for the GLD. Traders should watch the $155.00 level as the next important intra-day resistance level for the GLD.
The iShares Silver Trust (NYSE:SLV) is also surging higher this morning. The SLV is trading higher by $1.74 to $36.96 a share. Short term traders can watch for intra-day resistance around the $37.50 level.
The iPath DJ-UBS Copper TR Sub-Index ETN (NYSE:JJC) is trading higher by 0.45 cents to $58.14 a share. Short term traders should watch for intra-day resistance around the $58.25 and $58.50 levels.
As long as the U.S. Dollar Index continues to decline lower the leading commodity stocks should trade higher. The opposite would be true if the U.S. Dollar Index catches a bid off the lows, the leading commodity stocks could deflate and decline from the intra-day highs.