This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, December 05, 2014.
Gold is currently trading at $1,190.00 (G5) per troy oz., and broke through what I feel is critical support at $1,200, which didn’t hold. Gold has had high volatility this week, shaking out the weak hands, to continue its downward trend. Silver is currently trading at $16.30 (G5) per troy oz and traded super low down into the low $14.00 range, again this market really rattled the weak hands, and probably blew many retail speculators out with losses. The indices are are still trending up, and right at overhead resistance 2072.75 (Z4), I’ve said it many times, the daily charts are very wonky looking. Grains on the short term timeframe are trending slightly higher with Corn at $3.8750 (H5), Soybeans starting to look a bit weak at $10.0725 (F5) with a possible new death cross, will confirm in the next few trading days, and Wheat coming in at $5.8350bu (H5), and still looks the strongest in the grain complex. Natural Gas really came off its highs, now trading down to $3.675 (H4) mmBtu, with the slight anticipated warm December in the North East, and hitting the double top at $4.60, it was inevitable to come down, Crude Oil after the OPEC meeting last Thursday has dropped significantly to $66.57 per barrel, with no real bottom insight for now, the OPEC cartel has agreed to keep pumping at current production levels.
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In The News
Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota
When ISIS dared to steal and sell oil at below market rates, they were dire pirates that needed to be destroyed (and anyone who dared to buy it was pariah). So when crude sold at the wellhead in the Bakken shale region in North Dakota fell to $49.69 a barrel on Nov. 28 (according to the marketing arm of Plains All American Pipeline), you know there is an issue in the US Shale industry. As one analyst notes, “to a producer in Wyoming, if Brent’s $70 then I’m at $50, then I have to start asking does it economically make sense to keep drilling, they might start reallocating capital, you might see projects slowed or shut down.” (more)
Morning Market Review by Bryce Knorr
Grain futures are mixed this morning ahead of new data on exports out this morning. Outside markets are also fairly quiet, waiting from the latest jobs report on Friday. Corn prices are trying to move higher after choppy trading overnight. July futures reversed higher Wednesday off its support line from the November rally, above key moving averages another dime below the market. (more)
Fed’s Fischer: No inflation? Then forget rate hike
Federal Reserve Vice Chairman Stanley Fischer said that if inflation fails to take hold, the central bank will need to leave rates at their current low levels, delaying liftoff from the near-zero rates where they have remained for six years. (more)
In The Markets
Emini S&P (ES)
Market Comments: The upward trend still intact, and trending to new highs.
Gold (GGC)
Market Comments: WoW! What a week in gold, talk about volatility, I hope everyone survived it, and had correct risk parameters in place! Short term up, long term still trending down, looks like it might, just might make a pop to short term higher prices.
U.S. Dollar (DX-M)
Market Comments: Currently trading off its recent highs, and doing some back n’ fill action, still the up-trend is still very well intact at the current moment.
The Week Ahead
- 12/9 – JOLTS 10:00AM ET
- 12/10 – EIA Petroleum Report 10:30AM ET
- 12/10 – Treasury Budget 2:00PM ET
- 12/11 – Jobless Claims 8:30AM ET
- 12/11 – Retail Sales 8:30AM ET
- 12/11 – Business Inventories 10:00AM ET
- 12/12 – PPI-FD 8:30AM ET
- 12/12 – Consumer Sentiment 9:55AM ET
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