Not much happening on this day after Christmas but I found a few things for you to consider.
It has been a very quiet, rangebound trade since the conclusion of the last raid back on Thursday. The HFTs are in charge and they are alternately jamming price slightly higher and lower as they attempt to fatten some profits before year-end. The result is 3 days of market boredom with silver in a 50¢ range and seemingly going nowhere. Gold is stuck, too, but at least shows some signs of life. It double-bottomed near $1640 late last week and has since recovered quite nicely. IF it can get some traction here and move UP through $1680 and then $1690, it will actually enter 2013 with a positive-looking chart. Let's just see what the rest of this week holds.
The only market that held any excitement today was crude. Recall that we've been watching crude in a range from $85-90 since mid-October. Today, it finally broke higher and through $90, with the Feb13 closing at $91.17. Now the question is: Can it hold the breakout tomorrow and Friday or will it simply fall back down under $90? IF it can hold, it will set up an early 2013 test of the $95 level and IF it gets above there, a return trip to $100 awaits. Two things:
- $100 crude would definitely be supportive of higher metals prices.
- The situation in the MENA has been "hot" for some time now with various headlines going and coming. However, crude has remained below $90. Suddenly, today, it's $91. Hmmmm....
Finally, if you're like me you're probably looking for something to do, so, below is a YouTube link to a documentary. This show was mentioned in a ZH thread last week and I took the time to watch it. It's a fascinating story about the "Flash Crash" of May 2010. It's relevant here simply because the focus is High Frequency Trading and, as you know, those damn WOPRs have been wreaking havoc in the metals pits for some time now. Here are some background links to pique your interest:
And here's the show:
That's all for now. Hang in there and keep the faith.