A less than expected contraction in the U.S. 2nd Quarter GDP has been tanking the Dollar all day. This weakness has encouraged traders to buy December Gold. The surge in the gold market has put this market in a position to resume the uptrend with a breakout over the last swing top at 962.70.
September Silver is also rallying sharply higher. This market, however, has more upside potential, provided it can break out above the last swing top at 14.10. Following this move, look for a test of at least 14.34.
Equity markets appear to be running out of steam despite the better than expected news about the U.S. economy. Some traders feel that this number was already in the market, others feel that valuation is the issue. As the U.S. earnings season comes to end, some traders are questioning whether the better than expected earnings reports actually reflected the true condition of U.S. corporations. Many of the companies that posted great earnings did so by slashing expenses. Investors will be more encouraged to buy at these high levels if they can see proof that revenues will also increase as the economy begins to show signs of improvement.
Traders should watch the September E-mini S&P 500 into the close. Last week’s close was 977.75. A close under this price will create a weekly closing price reversal top which could be a signal of weakness next week.
September Treasury Bonds are trading higher. This is a follow-through rally after yesterday’s better than expected Treasury auction results. Technically, this market is in a position to post a gain for the week. This weekly reversal to the upside may be an indication that equity markets have reached a short-term peak.
September Crude Oil has recovered nicely after a huge inventory-induced break earlier in the week. Equity markets are helping to hold this market steady today, but the strong surge in the Euro is being credited for fueling the rally. This market is likely to hold on to gains into the close if the Dollar remains weak.
September Silver is also rallying sharply higher. This market, however, has more upside potential, provided it can break out above the last swing top at 14.10. Following this move, look for a test of at least 14.34.
Equity markets appear to be running out of steam despite the better than expected news about the U.S. economy. Some traders feel that this number was already in the market, others feel that valuation is the issue. As the U.S. earnings season comes to end, some traders are questioning whether the better than expected earnings reports actually reflected the true condition of U.S. corporations. Many of the companies that posted great earnings did so by slashing expenses. Investors will be more encouraged to buy at these high levels if they can see proof that revenues will also increase as the economy begins to show signs of improvement.
Traders should watch the September E-mini S&P 500 into the close. Last week’s close was 977.75. A close under this price will create a weekly closing price reversal top which could be a signal of weakness next week.
September Treasury Bonds are trading higher. This is a follow-through rally after yesterday’s better than expected Treasury auction results. Technically, this market is in a position to post a gain for the week. This weekly reversal to the upside may be an indication that equity markets have reached a short-term peak.
September Crude Oil has recovered nicely after a huge inventory-induced break earlier in the week. Equity markets are helping to hold this market steady today, but the strong surge in the Euro is being credited for fueling the rally. This market is likely to hold on to gains into the close if the Dollar remains weak.
