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Good morning. It’s Monday, October 16th, about 6 a.m. Central Time. Overnight, the precious metals are correcting after Friday’s explosive move higher. You’ve got gold down $12 in 1920. Nine, Silver down $0.16, 20 to 73. Copper’s up one at 3.50. Nine and platinum is down to at 882. So the efforts to slow the pace of the Middle East conflict are gaining momentum. You’ve got several top officials and advisers flying out there this week. Also, President Biden is also scheduled to make an appearance. And this is really the reason for the correction this morning. Now, it does feel like a flashback to the beginning stages of the Russia Ukraine conflict, where every Friday we saw traders really step out of any kind of risk on assets and really prop up some of those positions, especially gold, silver, crude oil, natural gas, the dollar index and getting out of all U.S. equities. So you’re having these wildly emotional flashbacks to what happened there. I believe this is a little bit more isolated at the moment. At least they’re trying not to expand this into a bigger conflict. And I think that’s the reason why a lot of these top officials are now trying to make their way out there. So looking at some things here this week, it is going to be a busy week. For equities with their earnings releases. And we should also see some remarks from. Treasury Secretary Janet Yellen. The economic release here today, it’s pretty light. We only have the Empire Manufacturing Index. Now, here’s really where I’m watching it. So forget the headlines, Forget what’s going on as far as you know, you can go to websites and you can see all kinds of fear mongering tactics. And you could also see the flip side where they’re talking about, you know, peace negotiations and things like that. So forget all that which is focus on the technicals here.
So gold on that explosive. Move higher went neutral trend. Okay. You do have new levels of support and resistance and you need breakout points in order to establish some of the trend traders to go long. They’ve been short this entire time. They should have covered now it’s come up now it should be trading on a neutral trend. They’re going to be watching for a close excuse me over Friday’s high. So that is 1946 20. That will trigger them into long positions. It’s about 1944 to 1926. Their next level of resistance going to be 1965. And above that will be the 200 day moving average in 1981. If they get above the 200 day moving average, I think it’s game on. You’re going to see a lot of people piling into that market. Now, the support levels, these are all equally as important. Your first level support on gold, you don’t want to see. You cross below 19. 24. That was the 50 day moving average and we’re only $5. Away from that right now. I think that’s going to be a small line in the sand. 1900 will be your. Critical level of psychological support and then below that is 1880. You do not want to see it go below 1880. That was Thursday and Friday’s low. That was the key level of support. So these are all very important numbers here today. And on the silver market, it is still bearish trend. It needs to get over 2336 in order to get to a neutral trend like what gold did. But the key levels are all there and the psychology has changed. So you look at the 50 day moving average, that’s going to be 2318 and your first level of resistance is going to be 20 to 99. The high in the overnight session was 2291. We need to get over 20 to 99 to get to the 23 handle to challenge the 50 day moving average at 2318 and then above, that’s a 200 day moving average at 2397. Don’t even worry about that one yet. We’ve got to get over 23 first. Now, your key levels of support are 2238. Okay. And then that was Thursday’s high. And then the line in the sand. I think on Silver’s 22 bucks, we closed below 22 bucks. I go, it’s going to be a problem. Now, the the deal is, is that we’re going to be extremely volatile.
So a lot of these signals could end up being fake. That’s why, you know, perhaps looking at your individual strategy, your risk management, things like that, you know, it’s really going to come into play position sizing and. The product that you use. Are you using a future, an option, things like that. So really reassess these things because I think it’s going to be a bit more volatile. Now, we do have ten year Treasury yields up seven right now at 469. That’s going to further weigh in on the gold market at the moment. And then you got crude oil futures, which are kind of left in limbo at the moment, 87, 71 unchanged. So they don’t know what to do because Israel is not a major producer. And unless you start having things curbed production curbed, then you’re not going to see this follow through to the upside. Now, the dollar index, which is very interesting, 106 30 down 12 that’s getting closer to your going more neutral trend than it is anything. So we’ll have to look at that number.
So again, the outside markets are mixed here. We do have a lot of earnings coming out here, this chart this week. So you’re getting questions. Give me a call. I love to talk to you guys a lot to find out about what your strategies are, how you position the market, what types of you know, what websites to use to look at these things.
I well, I’m a big advocate of learning more things and expanding into things that I haven’t seen before. So you any questions? Give me a call. 312858733. Remember of futures option trading does involve risk loss may not be suitable to all investors. Good luck and good trading.
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