Commodities and Commodity Stocks Surge

For the past two weeks I've been commenting on the bullishness I was seeing in commodity related stocks. Last weekend I posted some comments on CRX which you could read about here. My reasons for being bullish on the metals were cyclical and seasonal. My reasons for being bullish on oil stocks were cyclical, seasonal, oil stocks showed relative strength , CRX pulled back to support with oversold oscillators and the trend in these stocks is up if you look at the big picture.

Today gold surged up almost 12 dollars for the April contract. Crude oil was up over 2 dollars on news that the U.S. plans to double the nation's Strategic Petroleum Reserve.

If you look at the above chart of GLD which is the ETF for Gold, you will see that the 3 month cycle low looks like it really is starting to move now. GLD is also breaking out of a large triangle continuation pattern. My objective for this trade is a test of the high from last May which is 72.