Silver Market Recap for 10-11-10
The silver market did manage another new high for the move and in the process it forged a fairly impressive trading range for a holiday thinned trading session. However, silver was probably supported from its industrial roots as copper, sugar, cocoa, cotton and grain prices all soared again today. While the outlook for the economy remains somewhat suspect, the price action in certain commodities recently has clearly started to foster some inflation talk. Silver could have been tripped up by a negative 2011 price forecast that was floated during the trading session but instead silver held together fairly impressively.
Gold Market Review for 10-11-10
The gold market rallied above two of the last three all time highs, but seemed to have trouble ranging up aggressively. A thinned holiday trade and a lack of definitive direction from the currency markets might have held the gold market back. Some traders suggested that the gold market was correcting its overbought status with the choppy two sided trade early in the Monday trading session, while others thought the market lacked enough fresh headlines to drive prices in either direction. While the market was presented with some Fed dialogue, the trade didn’t seem as eager to play up the prospect of easing. Gold might have garnered some support from the National Association of Business Economists who suggested that the risk of inflation was slightly higher than the current risk of deflation. The NABE also expressed concern about the level of the US deficit and that probably served to embolden some bulls.
After reading the silver and gold commentary, traders might want to take a peek at the commercial traders momentum. The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports. Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it. In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much. Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices. Therefore, trader should be able to incorporate this valuable information into their futures market education.
The daily commentaries provide a recap of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a rundown of any reports released that day, and a look ahead at the next day’s schedule. Market commentaries for corn, wheat, soybeans, gold and silver are provided by CME Group. The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
This blog is published by Andy Waldock. Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. As a result, Andy Waldock may have positions for himself, his clients, or his family in any commodity future market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets may not be suitable for all investors due to the high degree of leverage. There is considerable risk in investing in commodity futures. If you are interested in reading other published articles, commenting on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.