This morning we have stocks weaker after a huge decline in the ADP December jobs forecast, -693,000, with the official government report due Friday. As bad as that is, it's not entirely unexpected. I think the market has been focused more on the potential with Obama's new proposals than on the awful economic data we've been receiving almost daily. This shifts the focus somewhat and its not good. A move closer to 900 may produce trade signals to get long, however, but we'll hold off on that for now.
The dollar has come off substantially since the early Tuesday morning highs. Those highs corresponded with the low in gold around 838 and lows in the EC and SF. I mention it to point out that its worth looking at the Daily Buy/Sell zones posted on the website as they can often identify general moves if not specific trades. Now the dollar index has moved into its daily buy zone and gold into its sell zone. So the recent moves may have run there course for now.
There is a substantial risk of loss in trading commodity futures, options and foreign exchange products. Past performance is not indicative of future results
Posts
