Key World Stock, Crude, Gold and Silver Markets Briefing
$DIA, $OIL, $USO, $GLD, $SLV
Commentary: Cash is King (cash is an asset) in here as stocks and bonds look overvalued to market participants. The higher chances of a rate hike this year and the proximity of the US Election are weighing on the markets. PE
DJIA at 18066.75, -1.41% is dicey in here but, as the support at 18000-17850 is holding, the near term trend is still, up but a break below 17850 can extend the decline to 17500. The next 2-3 of sessions should tell say who among The Bulls and The Bears will take control in the medium term of the markets.
Tuesday, the US major stock market indexes finished at: DJIA -258.32 at 18066.75, NAS Comp -56.63 at 5155.26, S&P 500 -32.02 at 2127.02
Volume: Trade was heavy with over 1-B/shares exchanged on the NYSE
- Russell 2000: +6.8% YTD
- S&P 500: +4.1% YTD
- DJIA: +3.7% YTD
- NAS Comp: +3.0% YTD
As I write this report at 7:21a EDT, Wednesday 14 September the DJIA mini Dec futures are trading at 18,022.0, +13 or flat to unchanged with a slight Bullish bias.
DAX at 10386.60, -0.43% is testing the support of 10350 as it follows DJIA at this point and if the US market weakens further, DAX can see 10100-10000 levels before buyers return.
Nikkei at 16689.31, -0.24% is seeing a contraction of volatility for the last 9 weeks and may see very sharp movements in the coming days. The range of 16500-17200 can continue for a few more sessions, but a break from this range may be the initial signal for a volatility expansion.
Shanghai at 3014.93, -0.28% has been unchanged in the last 2 sessions running, as it continues to trade just above Major support at 3020-3000, below which the medium term uptrend will be threatened and deeper targets of 2940-30 open up. Wait & Watch the price action here.
Nifty at 8715.60, -1.70% has held above support of 8700 Monday, but it has also created a very Bearish pattern called and Island Reversal, suggesting the decline may extend to 8600-8500 near term. Buying is not recommended until a clear reversal signal emerges.
Crude Oil, Gold, Silver & Copper Markets
Commentary: All commodities are weak as even the precious metals are not attracting money as safe havens. Rangebound movement may be expected for the week.PE
Gold at 1319.58 has not benefited from this risk aversion, and has come closer to the long term support of 1310-1300, again where the buyers may come back to drive the precious Yellow metal higher towards 1330-40.
Silver at 18.8590 is back to the weekly lows after bouncing to 19.30 as expected. A failure to rise above 19.30 can push it down to the Major support of 18.50 which may hold near term.
Brent Crude at 47.25, and WTI Crude Oil at 45.11 trade at the same marks seen Monday morning. The net movement NIL, suggesting a higher probability of sideways action. On the week, the range for Brent Crude can be 46.50-50.00 and for WTI Crude Oil, 44.00-47.00.
Copper at 2.109 bounced from the support of 2.07, but it needs to break above 2.12-14 before the higher target at 2.20 can come into consideration. Otherwise, more sideways movement in the range of 2.07-14 is seen for now.