13
Sep

Current thoughts 9/13/16

From the Trading Desk

The markets were a sea of red today with the Dow Jones falling over 250 points and closing below its 100 day moving average for the first time since late June.  A slump in crude oil and energy equities led the broader stock market and commodities complex lower.  Uncertainty concerning next week’s Federal Reserve monetary policy decision appears to be well-ingrained in the market’s mentality right now and participants are becoming increasingly risk averse.  Gold has traded lower for five consecutive sessions and next major support is coming in at $1,300, the convergence of the 100 day moving average, psychological support, and a long term trendline dating back to December of 2015.

I know I sound like a broken record, but gold started the day up and the dollar took over from there moving higher and gold lower. The miners got hammered again. This is something I warned about here: Gold Miners Decline Coming And Caution On Buying Silver Coins

What got the dollar higher today?  The words of a BOJ (Bank of Japan) official set it off. See the story here: http://www.zerohedge.com/news/2016-09-13/its-not-though-we-can-keep-lowering-rates-forever-boj-official-said

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

Disclosure:

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.