Tuesday 21 May 2013

Pre-Market Brief

Good morning. Futures are flat for equities, with sp'500 unchanged @ 1666. However, there are again sharp falls in the precious metals market with Gold -$22, and Silver -70 cents (-3.3%). Oil is a touch weak, and the higher USD is no doubt part of it.


sp'60min



sp'daily5


Summary

I'm not surprised at the fact metals are lower - they are way high on the 15/60min cycles, but the size of the falls should be a real concern for anyone long.

Indeed, the 'last ditch' short stop levels are pretty clear, at yesterdays opening lows.

*there is mid-sized QE-pomo today, and if trading volume remains low, then the algo-bots will very likely be able to melt the market across the afternoon.

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*I will be considering a USO/SLV long today, although the latter is now in danger of taking out the recent low, and would no longer be a valid target.