It’s been a period of pause and reflection for equity markets, following the picture perfect price action of August, as the up elevator finally reached the next level, rolling gently over into the current phase of price congestion.
Oil traders hoping for a slow down in the bearish trend, to enjoy a relaxing weekend away from the screens, may have been tripped up by the Chinese (FXI, quote) data which slipped out on Saturday, with industrial production coming in at 6.9% against a forecast of 8.8%, missing the forecast by some distance, and whipping up the perfect storm.
Gold has continued to remain heavily under pressure once again in today’s gold trading session, with the bears in full cry, as the precious metal moved relentlessly lower to trade at $1238.70 on the December contract at time of writing.
In a post several days ago, I described the recent price action for the major US indices as perhaps the most elegant we have ever seen, arching higher through August and into early September before reaching a plateau.
Whilst it’s been a torrid time for gold bugs, investors in silver have fared little better, with the metal falling from the dizzy heights of $50 per ounce, to currently trade at $19 per ounce.
Brent crude oil (BNO, quote) dipped below $101 on Monday morning after last week’s jobs data disappointed. The commodity traded at $100.81 at 4:50 GMT as investors worried about demand in an oversupplied market.
The short term rally for crude oil, came to a shuddering halt yesterday, as the December WTI futures (USO, quote) contract closed at $92.88 per barrel, having shed over $3 per barrel on the day, closing as a wide spread down candle on the daily chart.
As US markets returned to work yesterday after the long Labor day weekend, and an even longer summer, trading for gold started with a bang.
There are so many trading maxims it’s often hard to ignore them, but there are two that spring to mind considering the daily chart for the Emini NQ this morning.
Brent crude (BNO, quote) oil traded steadily at $102.10 at 8:10 GMT as the global supply glut weighed on prices.
