Over the past few weeks, the U.S. Dollar has been strengthening. This is in direct response to the EuroZone’s problem with the PIIGS and a flight to safety. In reaction, metals have been drifting lower as have been most commodities.

Yet last week we finally saw the correlation break (dollar up, commodities down) EU responded with a helping hand to Greece that somewhat calmed investor’s jitters. If the U.S. dollar begins to drift lower, there is a good possibility that there will be a short-squeeze reversing the recent trend for gold (GLD) and other metals/commodities.

Last week we suggested that a break over $106.50 may be an entry point for GLD and we did so across the board for for our client portfolios. Silver (SLV) is looking like it may be oversold and might be worth considering as well.

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Several oscillators and signals are indicating that equity markets may continue their downtrend. Others are coming up with neutral positioning signals.

(Click on each chart to enlarge)

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Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.