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Oil, slip sliding away…

Oil, slip sliding away…
Category: Market Reports
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Posted: 12-11-2015

We see a slightly lower Dollar index this morning and Dow in the red as the markets focus on the continued fall in the price of Crude Oil. 

Wall Street traders report seeing selling out of the Far East overnight pushing gold and silver below their first levels of support. Gold broke thru support at $1,068.20 and Silver below the well watched level of $ 14.00.

A closing spot price below $ 13.85 today will give traders conformation that lower prices are in the cards as we approach the FED meeting next week. Most technicians agree that with a settlement above $13.85 can bring us right back to $ 14.00 in a heartbeat. A steady price under $14.00 once again should bring back the retail investor into the physical silver market. Question, can the retail investor support the price below $ 14.00 as they did before. This time I think the majority of retail investors will hesitate buying at these levels and watch what the Fed will do next week.

The anticipated rate hike next week does have some traders on edge because they say that the Fed has not been transparent for years and can be unpredictable. In the event that the FED does anything different from a .25 basis point rise, the traders and I agree, that will create massive volatility in the market. The anticipated rate hike and just as important, the language out of the Fed meeting will have a major impact on the market going forward. Latest probability of a rise in December rate hike next week is at 83 pct., up from 79 pct. earlier in the week. These odds gives the shorts more confidence in their strategy; or are they wrong that it’s baked into the market and we will see a different outcome to the price of gold.

We see a slightly lower Dollar index this morning and Dow in the red as the markets focus on the continued fall in the price of Crude Oil. Currently oil, is the Wall Street traders market of choice. This is what they like to allude to is a market with “VVT.” Volume, Volatility and Trend gives them, as speculators a good chance to make some money as the year comes to an end.

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

What are your thoughts? Oil, slip sliding away…