Wednesday, 13 January 2016

Pre-Market Brief

Good morning. US equity futures are moderately higher, sp +6pts, we're set to open at 1944. The 1950s look probable today, with the 1960/70s before the long weekend. With the USD +0.3% in the DXY 99.30s, metals are under pressure, Gold -$8. Oil is +0.6%.



So, we're set to see some upside follow through from yesterday. Overnight China declines are clearly a problem, but if Oil can push a little higher today, then the market should hold together into early next week.

To me, it is merely a case of whether we max out in the 1970s, or 1990s. Sustained action >2K looks out of range.

early movers...

TVIX -3.5% @ $7.60s... that is $4.20 below the Monday high. A horrific fall indeed, but it sure makes for a better buying level.

AA +1.5%... dead cat bounce
FCX +1.9%.... as above.
TWTR +1.2% @ $19.85.... the mid/low teens look due by May/June.

Update from Oscar

I realise Oscar annoys some of you, but still... a good oil call IS a good oil call.

*I find it amusing Oscar, and so many out there don't like to say they 'predict' things.

Doomer chat... Hunter with Hoffman

I'm highly inclined to go on a long rant about what is said in this latest gold bug promo, but suffice to say, its pretty bizarre viewing.

Hoffman sure does throw a lot of deflationary talk around, and yet still holds to higher Gold/Silver prices. The fact he cites Mr Harvey (Gold could be 5K within 3 months) Organ, with a straight face... incredible!  Then there is the the old 'cartel' argument, the same old crap gold bugs been touting for decades.

After almost five years of declines, the Gold/Silver bugs are still in denial... they've learnt nothing, and yet at the same time, many of them still look at themselves as traders, or even economists.

*yes, Hoffman looks like the reaper ain't far off, and frankly, it doesn't look like he'll live long enough to see Gold make it back to the 2011 high of $1923.70.

I have long touted that one of the indirect signals for a Gold//Silver price floor will be some of the Gold bugs to 'disappear'... along with their websites. Capitulation IS coming in gold bug land. It won't be pretty... but its necessary.

Overnight Asia action....

Japan +2.9% @ 17700s
China, -2.4% @ 2949... unravelling into the close.... as 3K is closed under... and the 2500s are on their way.

Have a good Wednesday