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00:00CLOSE. " I ' M SCARLET FU. CAROLINE: I ' M CAROLINE HYDE. IT IS TIME FOR CHARTING FUTURES HERE HERE IS ABIGAIL DOOLITTLE. STOCKS DID PRECISELY NOTHING. THERE IS A DECENT SELLOFF IN COMMODITIES. ABIGAIL: YES, YOU ARE RIGHT ON BOTH POINTS. EVEN THOUGH THEY HAVE ALL-TIME HIGHS, WE HAVE A SELLOFF OR THE COMMODITY COMPLEX. LET ' S LOOK AT THAT ON THE DAY. AS YOU CAN SEE, DOWN 1%. THE BIG DRAG, CRUDE OIL, DOWN SIX OUT OF THE LAST SEVEN SESSIONS. PERHAPS ON THE INVENTORY SITUATION, WORRIES ABOUT THE GLOBAL ECONOMY, PLUS THE SAUDI ARAMCO DETAILS OF THE DEAL EVALUATION NOT COMING OUT WHERE SOME INVESTORS AND TRADERS WOULD LIKE IT. GOLD FUTURES, FLAT. ALL OF THIS AS THE BLOOMBERG DOLLAR INDEX IS DOWN. TYPICALLY A DOWN DOLLAR WOULD HELP THE COMMODITIES. LET ' S LOOK AT LONGER-TERM CHART OF THE DOLLAR INDEX TO SEE WHAT THIS COULD SAY ABOUT COMMODITIES GOING FORWARD. THIS IS MORE THAN ONE YEAR CHART, WE SEE A NICE UPTREND AS SHOWN BY THE 200 DAY MOVING AVERAGE. THAT TELLS YOU THE BUYERS ARE IN CONTROL. WE HAVE THIS RISING UPTREND, VERY STEADY CONSOLIDATION UP AND DOWN WITHIN THIS TREND. MORE RECENTLY, WE HAVE A -- HAVE HAD A TEST OF THE BOTTOM CHANNEL. WE HAVE HAD A TEST OF THE 200 DAY MOVING AVERAGE. ANOTHER TEST COULD BE ON THE WAY TO THE 200 DAY MOVING AVERAGE. UNLESS WE SEE A BIG MOVE BELOW THE RECENT LOWS, WE ARE LIKELY TO SEE THE DOLLAR INDEX GO BACK TOWARD 100. MAYBE EVEN HIGHER. IT WILL BE INTERESTING TO SEE WHETHER OR NOT THAT HAPPENS. IF IT WOULD HAPPEN, IT WOULD PROBABLY BE BEARISH FOR COMMODITIES. TOM THORTON, THINK YOU FOR JOINING US. WHAT DO YOU THINK ABOUT THAT CHART, DO YOU THINK THE UPTREND WILL HOLD OR ARE WE ABOUT TO SEE A BREAK TO THE DOWNSIDE? TOM: I THINK WE COULD SEE THE DOLLAR INDEX DOWN TO 96. ABIGAIL: THAT WOULD BREAK THAT TREND. THAT WOULD ACTUALLY BE BULLISH FOR COMMODITIES. NOT SURPRISINGLY, YOU ' RE CHART OF GOLD IS SOMEWHAT BULLISH PAIRED LET ' S LOOK AT YOUR BULLISH CHART. TOM: I WAS HERE IN AUGUST. I SAID LOOK, I THINK GOLD AND RATES WILL BACK OFF A LITTLE. SOME OF THE RISK OFF ASSETS. WE HAVE SEEN A BACK OFF ON -- IN GOLD. I THOUGHT WE WERE GOING TO GET 1400. 1450 IS WHERE WE GOT. ABIGAIL: $100 IS A PRETTY GOOD CALL ON YOUR PART. TOM: WHAT I THINK IS REALLY IMPORTANT RIGHT NOW IS THE MAC D WAS VERY OVERBOUGHT. NOW YOU CAN SEE IT IS OVERSOLD. IT IS STARTING TO TURN UP WITH A HISTOGRAM. I THINK IT IS REALLY BULLISH, IF YOU LIKE GOLD, THAT YOU DID NOT HAVE THAT MUCH PRICE DEPRECIATION. BUT YOU HAVE A FULLY OVERSOLD MEMENTO VINDICATOR. -- MOMENTUM INDICATOR. AND SEASONALITY IN DECEMBER IS QUITE GOOD. ABIGAIL: YOUR BIASES SOMEWHAT BULLISH ON GOLD. LET ' S TALK ABOUT YOUR OPTIONS TRADE. WE ALWAYS TRY TO EDUCATE OUR VIEWERS ON THE FLEXIBILITY AROUND FUTURES. THERE ARE OPTIONS YOU CAN TRADE ON GOLD FUTURES AND THIS IS HOW YOU WOULD DO IT FOR YOUR BULLISH IDEA. TOM: I LIKE CALL SPREADS ON GOLD. I LIKE THE JANUARY 15 20 21570 CALL SPREAD. YOU WILL PAY FIVE TO ANY FIVE, IT EXPIRES THE DAY AFTER CHRISTMAS. HOPEFULLY YOU GET A VERY NICE CHRISTMAS PRESENT WITH THIS TRADE. VOLATILITY FOR GOLD IS VERY CHEAP. THAT IS VERY GOOD. I LIKE THIS RISK REWARD SCENARIO. ABOUT EIGHT AND A HALF TIMES RETURN IF IT GOES THROUGH THE BULL STRIKE PRICE. THAT IS ONLY A 6% MOVE. ABIGAIL: YOU HAD A GREAT CALLS. YOUR NECK -- YOUR LAST ONE ON COFFEE. THANK YOU SO MUCH TOM THORTON OF

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Gold May Rally Above $1,560, Hedge Fund Telemetry's Thornton Says

In this edition of "Charting Futures," Hedge Fund Telemetry President Tom Thornton examines gold futures with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

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