General Finance

With the Non-Farm Payroll report coming out flat on Friday, the gold markets continued the surge to the upside we have been seeing for quite some time. With economic uncertainty out there, the gold markets become an attractive place for traders to hide money. The highs are in place just above, and it seems that the $1,900 level is going to be taken out again. The market is a screaming buy, and can be bought anytime you get a 3-5% correction at this point. We feel the $1,800 - $1.750 area is now massive support in this market. Pullbacks are going to simply be opportunities to buy gold on sale.

  Light Sweet Crude The CL contract had a very, very quiet day on Thursday, as traders are more than likely waiting for the Friday Non-Farm Payroll announcement. The jobs market is absolutely the key to an economic recovery in the USA. The markets are waiting to see if we can get a boost in employment. Until then, the oil markets will more than likely be quiet. The $90 level just above is a major resistance area, and if we can close above that level, we should go much higher. In fact, we are waiting for that to go long of this market. We see $80 as the current floor for the CL contract. Brent The Brent market had a negative day on Thursday, falling just short of eclipsing the $115 mark. The area proved to be too strong to overcome, but on the day before Non-Farm Employment, quite often the volume will be light at best. We still see $115 as an area...

  The natural gas markets had a back-and-forth day on Thursday as the market approached the all-important $4.10 area. This area will be significant resistance, and needs to be overcome for even the slightest hint of a bullish run. The set up is easy, as the candle formed on Thursday was a doji. Essentially, the doji is traded on a break of either the high or low, and trading with the momentum. We would certainly prefer selling at the breaking of the Thursday low.

  The gold markets were very quiet on Thursday, and basically sat still. The range wasn’t even $10, but many of you may not know that is actually how this market normally functions! The bullish nature of this market cannot be understated, and as such we only buy. We are waiting for pullbacks to get involved. The Non-Farm Payroll announcement will certain affect the market, so taking a position before then isn’t necessarily prudent. We like buying pullbacks, but after 9 a.m. New York time.

  Light Sweet Crude The CL contract had a very quiet day on Wednesday, as it sits just under the $90 mark. The $90 area is considered to be significant resistance. The closing on the daily chart above this area is needed for us to buy again, but we will not sell. The recent higher lows make sure that we cannot be sellers, and will not do so until we close below the $80 mark. In the meantime, we are buying pullbacks and waiting for $90 to give way to get aggressively bullish. Brent The Brent market rose again on Wednesday, and continues to soar above the $112.50 resistance level. The $115 level hasn’t quite giving way yet, but it appears that the level shall. If you are not long this market, waiting for a break above that level would be prudent. If you are already long, you know that this level is the next hurdle. With the recent lows being higher and higher...

  The natural gas markets suddenly shot straight up during the Wednesday session, and on massive volume. The technical picture looks like it could be changing, although the trend is decidedly down. The 15 cent move broke above the $4 mark, and now we have to see if the market can make a new high, at roughly $4.18 or so. If it does, we could go much further to the upside. However, the trend overall is down, so we are waiting to see if we get a bearish signal in the meantime.

  The gold markets fell on Wednesday, but not significantly so. In fact, the fall received a bounce in the later hours of the session, and the resulting candle looks very much like a hammer for the day. The market is certainly bullish, and the problems in the United States with fears of recession, and the European debt issues – gold is a safe haven play in the uncertain environment we find ourselves in. We are still buying on dips – this strategy has worked most of the last ten years.

  Light Sweet Crude The CL contract broke directly to the recent highs on Tuesday as traders continue to buy this contract from the recent bottoms. The $90 mark still looms just above, but it looks increasingly likely that the area will give way. The lows are getting higher and higher, and this shows a market that is building pressure to the upside. There are many reasons, perhaps supply…perhaps the anticipated Federal Reserve’s new programs to be announced in September, but they all show higher prices in the future. On a daily close over $90 – we are long. Brent Unlike Light Sweet Crude, Brent has broken through the overhead resistance, and in fact even ran all the way to the next big figure at $115 on Tuesday. The market looks decidedly bullish, and we are now net buyers of it.

  Natural gas markets are starting to put up a fight just below the $4 mark, although we have certainly seen the major support area give way. The Tuesday candle formed a bit of a hammer, and it appears that the bullish traders aren’t quite ready to throw in the towel just yet. However, arguing with the trend only leads to losses, and as such – we are waiting for a bounce from which to sell at this point. Certainly selling is the only direction to consider in this market now.

  There are many people that say gold is in a bubble, but the trading action on Tuesday did little to prove that case. The recent hammer last week turned out to be another buying opportunity, and it appears that the Monday pullback was seen as just that – a pullback. The Tuesday session saw another strong showing in the market, and we like to buy pullbacks at this point. We won’t sell gold at all, as the trend is simply too strong.