Overnight, Asian and European traders apparently reversed out of any short positions they still held, after betting on new lows in the immediate flurry of trade last Thursday night. We came within 1 dollar of a 1200 print so far in the Gold, with a high a 1,199.00. Silver is within 13 pips of a 19 dollar an ounce print, with a high so far at 18.87.
Crude oil has rallied as well, with a high at 7877. Perhaps we will see that push in Oil back towards 80 dollars, especially if the dollar weakens and gold is able to explore what lies above 1200 resistance. My guess is we will have resistance now at the 25 dollar jumps in gold, if 1200 is breached significantly. So look for resistance at 1225, 1250, etc…
The grains all rallied last night, late. When I went to bed SF was lingering around the 1055 level. We posted a low at 1052 1/2, and then with no selling pressure to speak of, we rallied to a high print at 1074.
Corn rallied up to 403, and December Wheat rallied to 568.
Look for continued strength across the board. Holiday Markets generally like to rally. While there may be rallies to sell, you can always be surprised at how much a market can rally from technical points. If anything, I would be looking for dips to buy.
Good Trading
