Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Monday, July 03, 2017
Precious Metals Sector On Major Buy Signal / Commodities / Gold and Silver 2017
Technical analyst Jack Chan charts the latest moves in the gold and silver markets.
Our proprietary cycle indicator is down.
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Monday, July 03, 2017
Gold: Are We All Dead Wrong? / Commodities / Gold and Silver 2017
The natural resource sector is the most volatile sector to invest in, says Lior Gantz, editor of Wealth Research Group, and he discusses factors to take into consideration when investing.
The fact remains that the natural resource sector is the most volatile sector we can invest in.
In your brokerage account, if you see reds and not greens, as you did between January 2016 and August, then make sure you read today's piece thoroughly.
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Monday, July 03, 2017
Copper New Intermediate Cycle : Bullish / Commodities / Copper
Copper confirmed a new Intermediate Cycle this week with a breach and close above my Red Yearly Cycle Down trend line (see first two charts). Given that this last Yearly Cycle was extremely Right Translated, cycle methodology would indicate we should expect Copper to make new highs in the year ahead of us.
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Sunday, July 02, 2017
Gold Price Trend Line Broken / Commodities / Gold and Silver 2017
Gold has closed below its intermediate uptrend line. This is the first confirmation that a larger intermediate degree decline has begun.
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Saturday, July 01, 2017
Gold And Silver – Why No Rally? Lies, Lies, And More Lies / Commodities / Gold and Silver 2017
One thing certain of all politicians, no matter where in the world, they all lie. The US federal government, that captive political body beholding to Wall Street interests, also a subsidiary of the international bankers that controls the West and all fiat-issued currency, is one of the worst when it comes to lies and deceit, primarily because Europe can only play a poor second fiddle to federal US dictates. South America can offer no resistance, nor can South Africa.
China is beginning to flex its overblown might, and Russia, while in opposition, remains under attack by the West, led by the Neocons [Nazi-types] from the US Deep State trouble makers. The only thing the federal US government does is start wars, and if there is a war going on anywhere around the globe, the US is either directly or indirectly responsible. Wars feed the [fading but still formidable] military might as a means of keeping the fiat Ponzi scheme, aka the “dollar,” alive as the [diminishing] world reserve fiat currency.
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Saturday, July 01, 2017
Gold is Weak in Real Terms / Commodities / Gold and Silver 2017
Intermarket analysis is a rather new field in technical analysis but one of my favorites because it is critical in understanding Gold. Asset classes like stocks and bonds are enormous and aren’t as influenced by as many factors as Gold. Trends in stocks, interest rates, commodities and currencies impact Gold in one way or another. We have written many articles over the years analyzing Gold with respect to its outlook and standing in real terms. Gold, when in a true bull market outperforms against all currencies and the global equity market. Unfortunately that is not the case at present. In real terms, Gold is weak, getting weaker and it could be a reflection of the metal’s worsening fundamentals.
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Friday, June 30, 2017
Has Gold Production Peaked? / Commodities / Gold and Silver Stocks 2017
We often hear about ‘peak gold’, i.e. the maximum level of the global production of the yellow metal. According to some analysts, the gold supply already peaked in 2016 or it is likely to peak very soon, offering hope for gold bulls. We do not agree with them. The notion of gold peak is flawed and should not be a basis for investing in gold.
And here is why. It’s extremely difficult – or even impossible – to determine the peak in gold production, as the level of mining depends on many factors, including future discovery of new deposits and technological breakthroughs. Look at the chart below.
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Friday, June 30, 2017
How High Could Crude Oil Price Go? / Commodities / Crude Oil
On Wednesday, the black gold gained 1.13% after encouraging the EIA weekly report. As a result, light crude climbed to the previously-broken lower border of the trend channel, but closed the day below it. Will we see further improvement in the coming days?
Although yesterday’s EIA weekly report showed that crude oil inventories rose by 118,000 barrels in the previous week (missing expectations of a draw), the report also showed that gasoline inventories, dropped by 894,000 barrels (beating analysts’ forecasts), while distillate stockpiles declined by 223,000 barrels and beat expectations of a rise of 453,000 barrels.
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Thursday, June 29, 2017
Is A Big Move In Oil Prices Due? / Commodities / Crude Oil
In options trading, a straddle is literally a sit-on-the-fence strategy. By purchasing a put and a call at the same strike (price of underlying commodity) for the same time period, an investor isn’t making a conventional directional bet; rather the investor is looking for a big move either up or down. The rub is that the big move must be greater than the sum of the two option premia or the bet goes south. But that is in the nature of the trade.
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Wednesday, June 28, 2017
Crude Oil Sinks 20%: Why "Oversupply" Isn't the Half of It / Commodities / Crude Oil
Oil prices have defied bullish efforts to curb oversupply. Here's our take on why.
I have a friend... let's call him Larry. Let's just say, Larry is not a fan of taking risks. He likes his reflexes fast, his cars slow, and his financial markets secure for the long haul.
So, when Larry called me up at the beginning of this year to say he's boarding the highly-volatile crude oil market, I was appropriately stunned. But here's the thing. He was still being "wary Larry," meticulously weighing the risks. It just so happens they seemed to pale in comparison to the overwhelming rewards.
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Tuesday, June 27, 2017
Crude Oil In A New Bear Market? / Commodities / Crude Oil
The newest bear market is in crude oil. The definition of a bear market is when an ‘asset class’ is down more than 20% from its recent high: (Bear Market Rally Definition Investopedia). It has been more than five years since the market fell so hard so fast from its’ high. Two months later, it was even lower. During the past 20 years, the SPX has struggled when oil fell into a bear market!
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Tuesday, June 27, 2017
Is There Still Hope For Higher Oil Prices? / Commodities / Crude Oil
Oil prices have cratered in recent weeks, dipping to their lowest levels in more than seven months and any sense of optimism has almost entirely disappeared. All signs point to a period of “lower for longer” for oil prices, a refrain that is all too familiar to those in the industry.
WTI dipped below $44 per barrel on Tuesday, and the bearish indicators are starting to pile up.
Libya’s production just topped 900,000 bpd, a new multi-year high that is up sharply even from just a few weeks ago. Libyan officials are hoping that they will hit many more milestones in the coming months. Next stop is 1 million barrels per day (mb/d), which Libya hopes to breach by the end of July.
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Monday, June 26, 2017
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Monday, June 26, 2017
Gold & Gold Stocks Nearing a Big Move / Commodities / Gold and Silver 2017
Gold and especially gold mining stocks rebounded on Wednesday and trended higher into the weekend. This is giving some investors renewed hopes that the bull market that began roughly 18 months ago is about to reassert itself. We cannot know for sure yet but what we can say is precious metals are nearing a big move. Gold and gold stocks have traded in tight ranges which will compress further while volatility indicators approach multi-year lows. This is the setup for a break and then a powerful move with increasing momentum and volatility.
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Sunday, June 25, 2017
Gold and Silver Ongoing Consolidation May End Soon / Commodities / Gold and Silver 2017
Technical analyst Jack Chan charts the latest moves in the gold and silver markets, and believes the ongoing consolidation may end soon.
Our proprietary cycle indicator is down.
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Sunday, June 25, 2017
Gold and GDX Update / Commodities / Gold and Silver 2017
From Venice… closes above the 10ema which is a good first step, IMO.
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Friday, June 23, 2017
Gold Summer Doldrums / Commodities / Gold and Silver 2017
Gold has spent most of June grinding lower on balance, damaging sentiment and vexing traders. Usual selling leading into the Fed’s latest rate hike contributed, but the summer doldrums are also in play. Gold has typically suffered a seasonal lull this time of year, on waning investment demand as vacations divert attention from markets. But these summer doldrums offer the best seasonal buying opportunities of the year.
This doldrums term is very apt for gold’s summer predicament. It describes a zone in the world’s oceans surrounding the equator. There hot air is constantly rising, creating long-lived low-pressure areas. They are often calm, with little or no prevailing winds. History is full of accounts of sailing ships getting trapped in this zone for days or even weeks, unable to make any headway. The doldrums were murder on ships’ morale.
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Friday, June 23, 2017
Gold’s Seasonality: Time to Get Positioned Ahead of Strongest Months / Commodities / Gold and Silver 2017
Despite the recent weakness, the price of gold is still up 9% year to date and may be poised for a strong second half of 2017. This is not unusual: the yellow metal also had a strong start in 2016, only to give back some gains but ended the year in an uptrend, setting up a rally as the calendar moved to 2017.
So is there a seasonal pattern to the gold price? To answer that question, we dissected gold’s performance dating back to 1975 and identified some trends investors can use to their advantage.
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Friday, June 23, 2017
EUR/JPY Exchange Rate and Gold / Commodities / Gold and Silver 2017
We argued many times that the yellow metal behaves as a currency rather than as a commodity. Hence, macroeconomic factors and currency exchange rates affect the price of gold. In previous editions of the Market Overview, we analyzed the impact of the U.S. dollar and its exchange rate with the Euro and the Yen on the gold market. We pointed out that gold is negatively correlated with the greenback, so it moves in tandem with the Japanese or European common currency, as they are the major rivals of the U.S. dollar.
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Friday, June 23, 2017
Crude Oil, Fresh Lows and Support Zone / Commodities / Crude Oil
On Wednesday, the black gold moved lower once again after government data showed an increase in crude oil production, which offset a decline in crude oil and gasoline inventories. Thanks to these circumstances, light crude hit a fresh 2017 low. What’s next for the commodity?
Let’s take a closer look at the charts and find out (charts courtesy of http://stockcharts.com).
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