Gold/Silver: It’s about to get volatile up in “thar” hills!

Phil Streible dives into today’s early market action with the Blue Line Futures Metals Minute!

Overnight, the precious metals are lower after yesterday’s increased volatility. 

What I am watching today

• The U.S. Dollar is in a tight range (200 DMA=103.71 & 104.66= 50 DMA)
• April Canadian CPI
  • Is it above or below 2.9%
    • Why is this important? Canada is the #1 trading partner of the United States ($356.5 billion)
  • Fed Comments all-day
    • (Barkin, Williams, Waller, Bostic)
      • Q: Does it matter? I won’t get political, but I believe the Federal Reserve cuts, regardless of inflation data. 

Metals (What to watch)

• Volatility – How do you measure?
  • ATR = Average True Range
    • Gold = $33
    • Silver = $1.04
    • Copper = 18 Cents
    • Crude = $1.50
    • S&P 500 = 35
• Risk Management – Remember to raise stops on June Gold
  • • First Notice Date May 31 – so be sure to exit before then

S&P 500 – The trend is up, but is it over-extended? 

**Call for today’s day trading idea**`

Critical Levels of Support 5305 & 5290

Upside resistance after testing support 5329

Crude – Bulls/Bears continue to battle

• Zone $78.00-$80.00
  • Saudi Arabia’s production declines is offset by an increase in exports
    • Saudi Arabia is becoming more efficient
    • Burning off excess inventory creates a tighter L-T Picture

Examples of trade ideas we are watching

• Correction in Platinum
  • $1030 support, $1100 resistance
    • 1100-1150 call spread for August $700 risk $2500 max profit less what you pay. 

Other Ideas – Wheat – Chicago & KC touching limit-up at one point 

• Strongest performance since last July
  • Weather all-around had been dry, from Australia to Russia
  • Check out the Grain Express, written by Oliver 

Sugar – Short Covering: is it a Buy?