Thursday, February 15, 2007

Friday Morning Curtain Raiser

I'm leaving the stock market recap and data preview to the fine folks at Stock Trading 101 tonight. I am simply bushed. But I will add one link. The Chinese year of the pig is coming up and Chinese soothsayers are predicting a tumultuous year for the financial markets. It got me to thinking that the predictions of those 'seers' are just as accurate if not more so than those that come from the well attired and wealthy variety of 'seers' on Wall Street. At least the so called soothsayers seem to recognize that there are problems in the world.

Natural gas - It got down to $7.06 but bounced back to $7.34 in late night trading. That keeps my short trade at a neutral return thus far. It will be getting quite warm. Over at the Wright Weather message board, skilled amateur forecast Don Sutherland (an excellent forecaster) sees this warm up coming (read about it here). I still think that means we see NG go below $7 in the days ahead to test support in the $6.75 area.

Crude - I've stayed away. It's been range bounce recently, but I'm seeing some signs of a potential break out. For the first time in weeks crude got slapped down to its 20 day moving average (see chart), but did manage to bounce right off. What I find intriguing about the chart below is that without fail rebounds in the 20 day moving average. when it's below the 50 day, have led to rebounds in the price of crude - of course, some rebounds larger than others.



Friday is the last day to trade the March contract.
Gold - I've opened a long position there again and will keep it simmering with a fairly wide stop... gotta be there following the recent dollar slide-o-rama and all of the whacked out geopolitical headlines that have been flowing. Thank goodness for http://www.jsmineset.com/ where all things related to gold are covered so well. I've got to link though to this story about Bush's ol' pal Vlad Ordering Russian Military Forces To Attack US Forces During Iran Invasion. That could get ugly. In this screwed up world in which we live, no wonder gold is up above $670.
Euro giving back a bit - EuroFX down 12 at 1.3152; Yen futures dipping by 5.

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