Gold posted a high at 1217.3 and settled 16 dollars higher at 1215.60 a new all time high settlement. Silver posted a high at 19.42 and a new all time high settlement at 19.24. The train just keeps motoring along, higher and higher. Aside from last Thursday night’s flush lower, these metals remain trending higher. Fundamentally, its the US dollar scenario playing out. The world is telling us it thinks the Dollar has not seen its lows as of yet. Although the US dollar ended higher today by 25 ticks. Crude was off 2 dollars.
Both the Stock indexes had lack luster trade considering the levels we are trading through.
SPZ posted a new 9 month high at 1115.50, but settled lower on the day at 1107.75 DJZ posted a high at 10505, but then settled lower on the day at 10439. These are both bearish hook reversals and show that the rally may be finally exhausting itself.
This being December, however, the tendency is for the markets to rally through the year, so be careful trying to pick a top in these markets, especially when you realize the DJZ has rallied over 4000 points since last March’s lows. Scary that no one seems to be singing the praises of this market, and in fact some market pros are very bearish, suspecting at the first of the year we could have a nice 30 percent pullback in these indexes.
The Grains all had wide trading ranges, with Jan beans settling down 25 cents at 1034With the fund buying finished for now, the hedgers have just been crushing this market for the past two days. Relentless selling, except for the occasional 5 to 8 cent rally in the face of shorts who sold the contract in the hole. When SF broke below the 1050 level, it was a case of another key chart point triggering massive sell orders.
The March wheat ended down 8 cents at 576 and March Corn down 8 cents at 406 1/2.
Corn and wheat are hampered by fundamental weakness, while export inspections for the grains are tomorrow. Perhaps there will be a bullish surprise there in the morning.
The selling has been heavy for 2 days now, each time we traded to the 1060 plus level in the Jan beans. There is support for Jan beans down at last Thursday’s low at 1021. Resistance above is now firmly at the 1060 level. A wide 40 cent trading range.
Good Trading
