This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, September 09, 2016.
No real earth shattering events this week and well represented in a somewhat low volatility week in the indices. Crude oil had a nice spin, with 1.413M build which should have been bearish, however the news was they are cutting production which shot it up almost 2.00 per barrel. Now we wait for the jobs report coming out at 8:30AM EST.
In The Markets
Emini S&P – ESU6 (Sep ’16)
Indices still trading in the middle of its ranges and 2190 overhead resistance, 2160 being support. However with the bonds heading lower, expect further possible weakness in the Indicies.
Gold – GGCZ6 (Dec ‘16)
Traded to the top of its range making a lower high keeping in tract its slow grind down from its peak $1,384.00 (Z6), T-Bonds are also putting further pressure breaking its neckline, take a look below this is really important for all markets.
Soybeans – ZSX6 (Nov ‘16)
Decent counter trend bounce as we await the WASDE report on Mon. September 12th.
Crude Oil WTI – GCLV6 (Oct ’16)
Nice rally in crude with significant inventory drop of -14.53M barrels, however I had a feeling this rally wouldn’t hold, this inventory drop wasn’t due to renewed economic activity, there was a draw because ships couldn’t offload during Hurricane Hermine. For now Crude is sitting on short-term support from the hourly chart.
T-Bonds – ZBZ6 (Dec ’16)
This has to be the chart of the week in my opinion giving us clues that the Indices/Metals could possibly be coming down for a while if this pattern holds due to their correlation.
U.S. Dollar – DX-MU6 (Sep ’16)
Holding support from 94.30 or higher, be interesting to see if the USD can re-claim 96.00 or higher.
The Week Ahead
- 9/15 – Retail Sales 8:30AM ET
- 9/15 – EIA Nat. Gas 10:30AM ET
- 9/15 – Initial Jobless Claims 8:30AM ET
- 9/15 – Industrial Production (Aug) 9:15AM ET
- 9/16 – CFTC Gold net Position 3:30PM ET
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