Commodities Explode Higher On Bernanke Stimulus Talk

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.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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