Playing the Commodities Charts

NEW YORK (TheStreet) -- The past week in gold, silver, oil, natural gas and the broader market wasn't anything to write home about.

We are seeing controlled profit-taking, which is making the market choppy. Many traders are getting very bearish on the market, which is a good thing, in my opinion. According to my market internals, sentiment and volume analysis, we should get a shake-out (sharp dip), which will make traders exit their positions before the market continues higher.

Some traders say we are in a bull market. Others say we are in a major bear market. Either way, the trend is up on the daily and weekly charts and companies are making money. Buying on oversold dips has been very profitable this year. Until I see things drastically change, this is my strategy for the broad market.

Let's take a look at the commodity sector.

HUI -- Gold Stocks Index
Recently we have seen money move out of gold stocks, but with the majority of them trading at the support trend line, we could see some fireworks this week.

10/23-Gold Mining Stocks (HUI) Source: StockCharts.com

Gold -- GLD Exchange-Traded Fund
Gold (GLD Quote) has been trading sideways as investors and traders digest the previous rally higher. The recent price action looks similar to the September rally and consolidation. Let's hope for another move higher without getting shaken out of our positon.

10/23-Gold ETF Trading (GLD) Source: StockCharts.com

Silver -- SLV Exchange-Traded Fund
Silver(SLV Quote) is in much of the same situation as gold. We are waiting to see what happens here at these support levels.

10/23-Silver ETF Trading (SLV) Source: StockCharts.com