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Last Friday marked the third week of losses for industrial metals which turned today with the U.S. market’s bounce. Europe’s crisis along with China’s slowdown has taken roughly 4.5% of equity out of industrial metals.
Many analysts are beating the war drums to jump back into the gold market – are they right? Maybe. The one question I’m always asked is, ‘shouldn’t gold be going higher?’
How do I hedge and why did my hedge not work in the past? Most people look at options, particularly PUT options as a stock insurance policy.
For the first time since the Greek and French elections commodity prices began to trade in divergence, starting in the European session. Growth sensitive commodities such as crude oil prices continued to follow markets lower, while copper is ticking higher by 0.015.
Risk off sentiment remains going into the weekend after a small bounce late in the European session as high yielding currencies face overwhelmingly oversold technicals in the near term.
As many of my posts refer to Fibonacci levels, I thought I should take the time to explain how to use the Fibonacci sequence when trading.
Euro zone headlines and fear of Greece’s exit has meant industrial metals have nearly wiped out 2012 gains after copper and the euro hit a four month low yesterday.
Overnight trading in copper has now been confirmed by the U.S. session as another leg down. Copper has broken below the 2012 sideways trading channel to fuel even more fear that the global economy is falling back into recession.
Sour sentiment from Asian markets has continued into the euro zone session, sending commodity prices lower still as traders continue to exit growth-sensitive commodities like copper and crude oil, and into safe haven assets the U.S. dollar and Japanese yen.
The world’s largest economy has now taken it on the chin in the last 9 out of 10 sessions with global and emerging market following. The old saying “sell and go away in May” seems to have been the right call for those that did just that. For the rest of us a healthy diet of risk off assets appears to be the name of the game.
