While writing this commentary on Tuesday morning (GMT) spot gold has surged above $1420 and silver is approaching the $28.50 level. Coincidentally there is a coordinated movement in FX trading with USD/JPY weakening along with USD/CHF.

The 240-minute chart for the US dollar against the Swiss Franc shows a violation of trend line and a break down from a bear flag formation which points towards a retest of the low from October 14 below 0.95.




Here again is the comment from yesterday’s column on EUR/CHF.

EUR/CHF is showing more signs of weakness and a potential break down, as anticipated in Friday’s commentary, and I would be looking for further declines over the next few sessions.

The target, below 1.33 is indicated on the 240-minute chart below.



Last week I suggested a long position in 7-10 year US Treasuries, available via the exchange traded fund IEF, and a matching short trade in EDV, which represents longer duration UST’s.

The spread trade has continued to produce positive returns and the EDV chart shows considerable scope for further decline in the longer term.



On the 240-minute chart, GBP/CAD shows that the violation of the trend line and cloud formation discussed here yesterday is looking more probable.

The lower low registered during the last 24 hours is highlighted in yellow.



Yesterday’s comment on ERES could have produced a 5% return from selling the stock on the open and covering on the close.

There are not many individual equities that I would be considering on the short side, but the chart for ERES looks vulnerable to further selling.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.