This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, September 12, 2014.
Gold is currently trading at $1,237.00 (Z4) per troy oz. finally breaking below and holding below support $1,242.00 (Z4) per troy oz.. Silver is currently trading at $18.60 (Z4) per troy oz. and also trending below major support of $18.75 (Z4), both markets look overall very weak. The indices continue their trek, to new record highs, with the ES Mini breaking above 2000 (Z4), however quickly retracing and now trading at 1989.35 (Z4), same applies to the YM, & NQ. The grains sector still showing downside action, with Corn making a new low at $3.3575bu (Z4) and now trading at $3.40bu (Z4), Soybeans $9.8450bu (X4), and Wheat at $5.05bu (Z4), please note, these market seem to always go where you least expect it. The energy sector is showing some signs of weakness, watching Natural Gas trading off its recent support low of $3.810 (X4) mmBtu, and Crude Oil holding at $91.54 (Z4), still way below the $100 dollar mark. Overall feels very deflationary when looking at the charts.
On the economic news front we had a very slow week, with a new report ‘JOLTS’ report (Job Openings) coming in at 4.673 Million, Crude inventories dropping 1.0M barrels, reflecting increased demand, & Jobless claims at 315K, and based from consensus 300K, tad worse than expectations.
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In The News
Retail Sales in U.S. Increase by Most in Four Months
Sales at retailers climbed in August at the fastest pace in four months and prior readings were revised up, boosting prospects for U.S. economic growth this quarter. (more)
IMO: Summer time, be interesting how Retail sales will be this winter, in particular with a possible snowy cold winter for the Northeast.
There’s no fear in the markets: Time to worry?
Even by summer’s traditionally low stock volume standards, this year has been very light, culminating in a “dismal” August which has left volumes down year-over-year, according to traders. (more)
IMO: One of the great things in the internet information age, psychology of trading. How often have you read a report, and to only think a market should move in a particular way, and defies conventional wisdom and does the opposite? Why having a good open honest relationship, with a good broker can be priceless when trading Futures.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
In The Markets
Emini S&P (ES)
Market Comments: Go back to sleep, still trending up, making new highs just over 2000.
Gold (GGC)
Market Comments: Looks nasty. Currently holding below support, possible meltdown if it doesn’t bounce from the current level and reclaim support.
U.S. Dollar (DX-M)
Market Comments: Broke through, and becoming stronger. I remember a time when the U.S. Dollar traded well over 120.00 on the index. Could we be headed there again? Remember, back when we had a strong dollar, we still always had issues overseas, just in our current times they are more front and center because of the information internet age. In other words, use caution trading the news.
IMO – In My Opinion
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Risk Disclosure
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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