Fed Chairman Ben Bernanke spoke on Sixty minutes last night. In general, it was a non event. I believe many folks got short stock indexes, got long the metals, and grains, looking for a surprise. Those who made large bearish speculative moves prior to this anticipated speech, most certainly were disappointed today.
As I write this, the Stock indexes remain firm, only down 17 points in the cash Dow and 2.50 in Cash S&P. The US dollar indexes move up to the 80.00 level and then backed off. However traders who were looking for a sell of in the dollar from some Bernanke surprise had their ideas fizzle (a long with their trading account value)
Trades I like…
Look to sell gold if it makes a run up to the recent high at 1424.30, definitely having a resting order to sell at 1425.00.
From a day-trading stand point, I would be looking for silver to continue move higher, with some good rallies to sell, however. That 30 dollar level already paid off as a sale (intra-day) today. Silver has bounced 5 dollars higher since finding support at the 25.00 level on Nov 16th and 17th. We are in uncharted territory for silver. I see 34 dollars an ounce as a reasonable target.
I think this will happen as gold gets inexorably drawn towards the 1450, 1475 and finally the 1500 level. I think it will come in fits and starts, but I also think its a good choice to buy breaks.
As for Crude Oil, I want to sell 90.00 the first few times we get to that print, looking for a scalp on weak long liquidation. Longer term, as far as upside resistance, you have to look back to the 94.00 level, of course the psychologically important 100.00 level. Bottom line, I am friendly longer term the crude. if you get a chance to buy crude at 80.00 again, buy it with both hands.
Good Trading
CER
