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Good morning. It’s Wednesday, November 29, 6 a.m. Central Time. Overnight, the precious metals are flat after yesterday’s explosive rally. You did have a rollover from December gold and to February and December silver on two March. So February, gold up $1 at 2061 March. Silver up $0.08. 2538. March Copper up one at 385 and January. Platinum down 13 at 937.
So gold futures have reached a seven month high, while the S&P and the Nasdaq have had their best months in November, in 16 months. So the expectations for an interest rate cut have more than doubled in Q1. We’re seeing now a 70% chance of an interest rate cut in May. And then there’s threat of a hard landing if we don’t get that interest rate cut.
So there’s a lot of variables that are going on right now. And I looked at a calendar of all the economic data that was spread out over the course of November, and almost every single one of them was either a miss decelerating or fell below those expected sessions that were widely casted by Wall Street. So with that being said, all your non-interest bearing type of assets have all been increasing and it’s been quite wide spread across many different asset classes and different commodities.
So we did also have Fed Governor Waller. He’s typically a hawk and he seemingly had changed his tune. So we’ve got a couple other key data points that are coming out today. We have GDP and then we’ll also be looking at that p C that is the Fed’s preferred inflation gauge. So if you look at the technicals here on gold, it’s bullish, it’s been bullish.
It’s about October 18th on that breakout, your key levels of support. So now we’ve got to start measuring and mapping the February gold contract, 2002 is going to be your key level support. It’s a 200 day moving average. Then below that, it will be 1969. You don’t want to see prices trade down there at all. On the resistance side, we’re going to start wanting to look at 2075 and 2100 on the upside.
Now, shifting gears is silver. It is also bullish trend had an explosive breakout. Now we’re trading that March contract. So there was a big differential between this and March. We’re going to want to look at that. Your first major level of support is going to be the 200 day moving average at 2414. Your key level support below that is the 50 day moving average, 2350 down to the trend reversal point, which is 2333.
We did have an explosive uptick here in the oil market, up about one and a half to 2% overnight, up a dollar 34 on the January contract, trading $77.73. It’s about the top of the week’s probable range. You do have a new discussion about a renewed OPEC meeting coming out on November 30th. I think that the cartel of the 23 different nations, they’re not really going to proceed forward until the bulk of them are recognizing some kind of cut or concession.
The dollar index is up 11. Sold off down to about the 200 day moving average, 102 50. Now we’re kind of bouncing back up a bit. The grains are all mixed. The currencies are mixed. Your ten year treasury yield sitting right at about 4.28%. So remember, we’re at 505. That was in the October, November peak. Now we’ve come down quite a bit here and also the two year yield down three basis points at 469.
Your equity futures are all up here today. So we’ll see what happens. I think it’s going to be another great day here. Hopefully precious metals could consolidate before extending upwards again. Those are healthy pullbacks. Those are healthy consolidations. They allow people to get out and also reenter into the market, come up with different strategies, take some of the option premium and the volatility out of the market, and then are able to reload with some call spreads.
So if you’ve got any questions, give me a call 312858733. Remember, futures options, trading of all trades, class may not be suitable to investors. Good luck and good trading.
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