This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, July 29, 2016.
The big news this week is no-change Fed Interest Rate Decision and the following Monetary Policy Statement. The federal funds rate will remain at ¼ to ½ percent trying to support further growth in the labor markets and increased inflation targets. So for now they will kick the can down the road for any real indication of any rate hike and keep the same course we have been on for some time.
In The Markets
Emini S&P – ESM6 (Sep ’16)
Very narrow trading ranges, and very difficult to apply any real technical set-ups. Slowly drifting down on the 4hr, however holding at support 2150.00, overhead resistance 2168.00 I’d expect any break above or below these levels will have some follow through.
Gold – GGCM6 (Dec ‘16)
Gold has decent re-action to the FOMC statement jumping about $20 per ounce, now settling back at $1,321.00 which is new support, fresh angel cross on the 4hr, however short term drifting back down.
Soybeans – ZSN6 (Nov ‘16)
Looking for a small bounce.
Crude Oil WTI – GCLN6 (Sep ’16)
Trading well off its highs, now in saying the trade is still short, however I’d be very cautious for any short covering buying activity.
T-Bonds – ZBM6 (Sep ’16)
Holding on the 4hr chart, look for a bounce.
U.S. Dollar – DX-MM6 (Sep ’16)
Interesting area on the USD, sitting right at support, personally I’d look for a bounce and see higher USD prices next week unless something fundamental changes.
The Week Ahead
- 8/1 – Gallup Consumer Spending 2:00PM ET
- 8/3 – EIA Petro Report 10:30AM ET
- 8/4 – Jobless Claims 8:30AM ET
- 8/4 – EIA Nat Gas Report 10:30AM ET
- 8/5 – Employment Situation 8:30AM ET
- 8/5 – Consumer Credit 3:00PM ET
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