Bad hair day/metals

Discussion in 'Index Futures' started by matthew, Jun 5, 2002.

  1. matthew

    matthew

    Hello fellow lunat.... I mean metals traders,

    Today's feature was large fund selling following yesterday's technical failure. Expect another two days of fund selling to pressure the gold and silver. Typically, fund action in the physical commodities lasts three days with today being day one.

    I still think we have to shake a lot of fleas of the dog's back before the structure of the market would allow a true sustained rally. At that point I will be favoring silver over gold as silver is a stronger leader (and it has some real, consumptive uses).

    The question is how far down we need to go to shake loose all but the truly faithful? It appears that a price under $290 would do the trick for gold.

    The picture for silver is less clear. I think we're going to have to take our cues from gold until it has done it's bit, then focus our attention on silver wherever it happens to be then.

    Some of the smarter cycle guys I know are starting to focus on the end of this month or the beginning of july as a potential bottoming period for metals.

    It looks like we could have the 1st truly fun summer with this stuff since '93.