OK, Maybe it is the Summer of Coffee

After a stellar month of May, gold fell flat on its face in June. Although the yellow metal has tightened things up so far in July, I have not had a gold long on in my trading account in over a month at this point. In all likelihood, the rising Dollar combined with a host of other factors likely threw a wrench in any hope for gold to dominate all summer, which is why we always strive to lock in at least partial gains when we have them with Members and respect reversals down, as we did with gold. 

Speaking of commodities, natural gas continues to turn in a steady, workmanlike breakout higher even as crude struggles this week. But the surge in coffee prices is most impressive this morning, as the supply dynamics favor higher prices yet, which means we should all be locking in coffee in bulk as best we can. Indeed, soft commodities continue to rebound nicely in the face of any dip we are seeing.

Turning to equities, the lowly small caps are leading the bounce so far this morning. I would resist fading it if this broken prior support (on IWM daily chart, below, arrow) fails to create a noticeable reversal down by the end of today. The IWM has some room up to the $218/$220 zone before I would look at shorting it.