Metals Report....
Daily Metals Report
Contributed by: Erik Gebhard
ALTAVEST Worldwide Trading, Inc.
July August September October
October 27, 1999
GENERAL METALS REVIEW
December Gold - O 291.7 H 295 L 291.4 C 294.2 Chg. +3.8
As of yesterday, gold had dropped $26 since October 18, so it was bound to
correct somewhat. Today, gold was jostled in a relatively small trading range and
after all was said and done, it ended the day almost $4 higher. As of yesterday,
gold had closed lower 7 consecutive times Falling lease rates, weakening
demand from Asia and India (due to the recent high price), and technical erosion
of support have contributed to the recent weakness. The market still looks ready
to test the 285 area in spite of the small bit of strength. Bulls should not assume
the market "has to rally" from this point, it may take a bit more time for buyers to
get the nerve to re-enter. Hopefully you perennial bulls aren't holding onto large
losses. As you know, equities have been extremely volatile this last week, but
today equities were quiet when the metals were trading. I still feel new buyers
should be attracted in the 285 area, technical indicators are still weak, and we
are trading below averages. The gap from 295 to 285 was partially filled, and the
285 region looks like the next downside target. Even though prices are dropping,
I feel the bigger risk is on the short side. However, in a couple of months, I think
its reasonable to expect to see gold in the $350 or $360 area.
December Palladium - O 390.25 H 394 L 390 C 391.15 Chg. -.85
January Platinum - O 401 H 404.8 L 395.5 C 404.4 Chg. +5.8
Platinum recovered about a third of what it lost yesterday. After being almost $26
lower intra-day yesterday, the market has actually rallied about $17 off that
low...talk about erratic! But as I have said, that's what thin markets are notorious
for. The collapse yesterday was brought on by the gold bears, as platinum bears
just couldn't stand to be on the sidelines. Fundamentally, there really wasn't any
big story, it just followed gold for the day. Palladium, in spite of the platinum
weakness yesterday, held its ground yesterday and today. Palladium has
whipsawed the heck out of traders over the last couple of weeks, but the recent
strength has formed an ascending technical formation which looks more bullish
than not. Just as with silver and gold, if you want to buy, do so on pullbacks such
as what occurred yesterday, as the overall trend in both markets appears to be
higher. Be warned however...these are wild markets...don't be disappointed if you
sustain large amounts of slippage! Need a broker? Contact me at
erik@altavest.com, and visit us at www.altavest.com to request our free
Real-Time charting software trial.
DISCLOSURE: The risk of loss in trading commodity futures and options can be
substantial. Before trading, one should carefully consider their financial position
to determine if futures trading is appropriate. The above comments should not be
construed as specific trading advice, rather a review of the markets. The
information is not guaranteed as to its accuracy.
The Daily Metals Report is contributed by Erik Gebhard, ALTAVEST Worldwide
Trading, Inc. and is reprinted here with permission. ALTAVEST Worldwide
Trading, Inc. is a full-service, commodity futures and options brokerage firm,
members of the National Futures Association, and registered as an Introducing
Broker with LinncoFutures Group. ALTAVEST Worldwide Trading, Inc. offers
online trading direct to the floor, real-time charts and analysis via the internet, free
daily TradeScope newsletter, daily research, 24-hour quotes and paper-trading
assistance.
Disclaimer: The advice given above is of a general nature and should not be
taken as a recommendation to buy or sell a referenced security. The information
is for informative purposes only and in no event should be construed as a
representation by this website or as an offer to sell or solicitation of an offer to
buyor sell any securities, nor is it a recommendation of any specific website or
financial advisory service. |
