TRANSCRIPT
Good morning. It’s Tuesday, October ten, about 6 a.m. Central Time. Overnight, the precious metals are mixed after yesterday’s kind of two part trading session. I’ll get into that in a moment. Got gold up five bucks, 1870. Silver down $0.06. 2185. Copper’s down three at 3.61 and platinum is unchanged at 89. So the first half of the session was really that go to safe haven play.
You had gold up, you had oil, you had U.S. Treasuries getting a bid. So Treasury yields were coming off. They had a sizable sell off to yesterday. Then you have the Japanese yen also getting that bid up and U.S. equities were lower. So is your classic whenever the crap is hitting the fan, that’s what people put on. They just blanket onto it.
They look at which one headed move yet and then they strike on that one. Gold already made its move. Let’s look at the yen. Oil already made its move. Let’s start looking at other energy substitutions like sugar, which took off yesterday. So and then as the day progressed, we started to see some things start to turn because as the geopolitical escalation was happening, we saw there was reports that Israel had struck some radio towers in Lebanon to kill off communications between Hezbollah and Hamas.
And there was building of troops around that Gaza Strip, tens of thousands of them. And the threats of, hey, if they go in with a ground assault, will other countries respond? Peace places like Iran and such? So it’s really the question is, if there is some kind of Middle East war that breaks out, will the Fed be able to continue on this path of raising rates?
And people think that the rising geopolitical escalation would definitely dampen that. So we saw ten year Treasury yields down 12 basis points, the dollar index almost coming on change and then risk assets all catching a bit. Things like the Nasdaq, things like the S&P, the Russell all going up. So kind of an interesting session here. Not a lot of follow through here today.
So we’re going to look if this was kind of a one off yesterday and then we’ll wait. Maybe we’ll just tighten up some stops. We will ratchet up some defensive positions here. So Gold current trend is still bearish. However, there’s been short covering. You got the safe haven bid in the buying, you got the stochastic SA rising from the dead.
So I don’t think anybody who’s shorting that market right now is probably in there at the moment. If they’re going to come in and they’re going to attack, they’re going to re attack on a closing basis where we fill the gap on the downside, we break into it, they’ll short the gold market. Gold breaks below like that. 1825 You look at a daily chart, they’ll start pressing those looking for a move into the 1700s.
So your support levels are 1866, 1858. In 1849, your resistance 1866 80 or I’m sorry, 1886, 1898, 1910. Nice to have a 19 handle. And the upside. And then we don’t have that 17 handle on the downside anymore like we did last week. So on Silver still bearish as well, a little bit disappointing on the first part of the session got that 30 set move.
Not a lot of continuation at the moment here so silver trend reversal point 2346 200 day moving average 1981. You have your support levels there 2121 7321 44 and 2116 were trade 2186 let’s see if that 73 holds. And then on the resistance side, they’re all in the 2022, 22, 38, 74 and 2309. So there are big moves on the upside.
So it’s when you get this kind of move and then you get those gaps, that’s when it widens out the resistance points. So outside markets are mixed. In all, we do have several Fed speakers out today. Tomorrow you got API, Thursday you got CPI and initial claims. And again, outside markets are mixed. U.S. equities slightly stronger, dollar down 11 right now, 105 69 York crude oil down 36 8602 and then ten year Treasury yields, they are up to it.
467 So not a big move up. So we’ll see what happens here. The other day goes. You guys want to travel on a research, shoot me an email, shoot an email. The info at blue line futures dot com. Give me a call 31285873. All three. Remember futures option trade does involve risk loss may not be suitable to all investors.
Good luck and good trading.
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