Morning Coffee Break – Thursday March 21 With no significant impact from the Federal Reserve’s two day meeting and statement the S&P 500 is coming off its largest gain in over two weeks. The crisis over in Cyprus hasn’t even deterred the U.S. equities from moving higher.
Doctor copper is anything but on the daily chart, as the May futures contract traded lower once again today, following yesterday’s sharp sell off, which saw the metal end the commodities trading session with a wide-spread down candle, finally propelling copper below the recent sideways price congestion which has been in place since early March.
Gold bugs finally had something to cheer about today as April gold futures finally awoke from their recent slumbers, trading higher in today’s session, and moving to test the $1600 per ounce price level. The catalyst for this modest recovery for gold was from the ECB, with suggestions that inflationary pressure was easing in the Eurozone, but hardly sufficient to spark a reversal in the longer term trend!
Most U.S. stocks finished higher yesterday, Wednesday, March 13, 2013, extending anew the rally triggered by Fed Chairman Ben Bernanke‟s decidedly “dovish” testimony before the Senate Banking Committee on Tuesday morning, February 26, 2013
Political uncertainty in Italy could impact global markets, but provide a “fantastic buying opportunity.” Like Jennifer Lawrence’s fall at the Oscars, unexpected but a chance to shine ‘comedically‘, Italy’s elections have shocked investors but provided attractive entry points to strong international firms, insulated from domestic woes (as well as offer up some funny one-liners from candidates).
Gold bugs finally had something to cheer about today as April gold futures finally awoke from their recent slumbers, trading higher in today’s session, and moving to test the $1600 per ounce price level
After a bullish performance last week, the market began yesterday a little off but managed to fight its way into increases across the major indices with S&P 500 closing at 1556, just 9 points shy of its record closing high in 2007.
And so the bullish trade returns. The up-down-up-down pattern that has developed over the past week continued yesterday in WTI and cast a positive light on an otherwise neutral-appearing chart. Brent appears similar, but couldn’t get much of a rally going yesterday.
The deja vu trade appears likely to remain in tact in the near-term, as recently attained bullish momentum was undercut in yesterday’s trade. The resulting sideways trend will oscillate between moments of euphoria and doubt, which may essentially feel like a repeat of the decisive rallies and selloffs of the last few weeks which were believed to be the beginnings of new breakouts and breakdowns.
Oil prices may hold within a sideways trading direction this week, as the short-term rally contends with a building bearish divergence on the daily stochastics oscillator.
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