- New Science in old markets -

Grains push up, gold makes a top, stocks extend. Copper is poised.

The corn and wheat markets have both compressed recently, for quite a while in the case of corn. Both now appear to be breaking upward from these compressions which should lead to further strength:

Wheat & Corn comp up brks

One word of warning - the wheat price has not yet closed above the compressed area but is trading well above it as I write. It may be prudent to wait for a closing break before buying. If it 'runs away' there is usually a later 'return to the compression' which we can buy instead.

Gold has risen since we advised buying in the May 10th edition.  Take a profit on those longs now and think about selling short - it may be better to wait a bit (as usual when top extensions occur) as some kind of short-term 'top' may need to develop before any weakness ensues. If you are impatient, sell short now

Gold daily top ext

This may have some implications for stocks. As we reported in the May 22nd edition, there were weekly-scale compressions in several US indices two weeks ago. These seemed to have broken upward at the end of last week but have pulled back a bit in the last few days. If they start to rally from hereabouts, don't fight the move as it may have a lot of force behind it. We still don't know which way these important compressions will break but there are continued top extensions in the stronger indices, including a weekly-scale Nasdaq top last week and a daily version in the Spyders:

Valug, Nasdaq, SPY signals

Lastly, copper is trembling on the brink.  Despite much bullish talk from the heads of mining companies and a well-publicised series of interruptions in ore supply, copper has traded sideways all year. There was a weekly-scale compression at the end of April that has still not yet quite broken in either direction and now a daily-scale version occurred two days ago. Watch this carefully as a new direction is coming soon and we suspect in may be downward. Until there is a break we cannot be sure but we are vigilant:

Copper wkly &dly comps