Gold/Silver: It's about to get volatile up in "thar" hills!

Bull & Bear - bull-bear-stock-market-business-1885566

Overnight, the precious metals are lower after yesterday’s increased volatility. 

What I am watching today

  • The U.S. Dollar is in a tight range (200 DMA=103.71 & 104.66= 50 DMA)
  • April Canadian CPI
    • Is it above or below 2.9%
      • Why is this important? Canada is the #1 trading partner of the United States ($356.5 billion)
    • Fed Comments all-day
      • (Barkin, Williams, Waller, Bostic)
        • Q: Does it matter? I won’t get political, but I believe the Federal Reserve cuts, regardless of inflation data.

Metals (What to watch)

  • Volatility – How do you measure?
    • ATR = Average True Range
      • Gold = $33
      • Silver = $1.04
      • Copper = 18 Cents
      • Crude = $1.50
      • S&P 500 = 35
  • Risk Management – Remember to raise stops on June Gold
      • First Notice Date May 31 – so be sure to exit before then

S&P 500 – The trend is up, but is it over-extended? 

**Call for today’s day trading idea**`

Critical Levels of Support 5305 & 5290

Upside resistance after testing support 5329

Crude – Bulls/Bears continue to battle

  • Zone $78.00-$80.00
    • Saudi Arabia’s production declines is offset by an increase in exports
      • Saudi Arabia is becoming more efficient
      • Burning off excess inventory creates a tighter L-T Picture

Examples of trade ideas we are watching

  • Correction in Platinum
    • $1030 support, $1100 resistance
      • 1100-1150 call spread for August $700 risk $2500 max profit less what you pay.

Other Ideas – Wheat – Chicago & KC touching limit-up at one point 

  • Strongest performance since last July
    • Weather all-around had been dry, from Australia to Russia
    • Check out the Grain Express, written by Oliver

Sugar – Short Covering: is it a Buy?

Connect with Phil: 

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