Summary:Risk-off continues. Euro, GBP continue to soften as USD, GOLD, benefit. Equities and Oil continue to slide
Markets as of 7:55pm ET
Commodities:
- Gold: 1335.0 +13.00
- Silver: 17.90 +.110
- Brent Oil: 48.41 -2.50 (reflects catch up post Brexit vote)
- WTI: 47.23 -0.41
- NMX Nat Gas: 2.64 -0.019
Equities
- DOW: 17154 (93.0)
- ES: 2007 (11.00)
- FTSE: not open
- DAX: not open
- NIKKEI: not open
Currencies ( in $US)
- EU: 1.10 -0.60%
- GBP: 1.34 -1.85%
- CAD:1.30 +0.10%
- CHF: 0.9729 +0.15%
- JPY: 102.00 -0.15%
Noteworthy So Far:
BGP:(13688)
- TRP 143.35
- support 13500-13250
- BEARish to 12500
- mkt under 13500 currently. close under here triggers momentum to 13250. then 12500
- Flags under 14100 can be sold. Settle over TRP reverses trend
- COMMENT: we are now looking at monthly charts for numbers
Gold: (131910)
- TRP 1295
- Support 1310., TRP
- Resist: 1345, 1359
- BULLish to 1359
- flags over TRP can be Bt.
- Comment: Earlier we synopsized the drivers behind Friday's Brexit vote HERE. We are biased in the macro and believe there is little standing in Gold's way from taking its place as a bonafide currency in a post Brexit world. Volatility aside, with the EURO and GBP down, it will be a matter of time before the US FED announces its own agenda to weaken the $ via swaps with Europe and/ or interest rate cuts. Brexit is a tipping point, but we expect pull backs as gov't speakers try to calm mkts. In the long run currency debasement will determine Gold's price. If all cunnencies are trading ZERO, what is it they are trading ZERO against? GOLD.
ES (201850)
- TRP 2073.00
- Support 199000
- Resistance: 2045, 2060, 2100
- BEARish: 1970 on radar.
- Flags under 2060 can be sold
- Settle over TRP reverses trend
- Comment: Another round of QE is likely and in the least we wil see rates lowered. But how much can 25 basis points do to help a market levitating on financial engineering instead of organic growth? NIRP is on the horizon and it will work at first, but in the end the FED will be paying banks to borrow money from it. That is unsustainable.
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