USM Bloggers

8-20-10 – Silver Market Recap Report 

The silver market clearly behaved like a classic physical commodity market in the wake of the macro economic letdown in the US economy this week. Additionally the silver market and a host of other physical commodity markets were undermined by renewed weakness in the Euro and other non Dollar currencies. Some players suggested that silver might have been indirectly undermined by a large single day increase in exchange stocks from earlier in the week, but recently silver just hasn’t been paying that much attention to supply side arguments.

Gold Market Review for 8-20-10  

With the gold market at the beginning of the week seemingly benefiting from slowing fears and the uncertainty created by that slowing, it was surprising to see gold under pressure at the end of the week because of the realization of slowing in the US. Perhaps an upside breakout in the Dollar took control over the gold trade from the classic slowing fears mentality and perhaps the gold trade was simply banking some profits from the 1 1/2 month rally in gold prices.  

After reading the silver and gold analysis, traders might want to take a peek at the commercial traders momentum.  The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports.  Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it.  In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much.  Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices. Therefore, trader should be able to incorporate this valuable information into their future market education.

The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a rundown of each commodity’s traded price activity, and a look ahead at the schedule for the next day.  Market commentaries for wheat, soybeans, corn, gold and silver are provided by CME Group.   The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. 

Andy Waldock circulates this blog.  Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  Therefore, Andy Waldock may have positions for himself, his family, or his customers in any commodity future market discussed. The blog is meant to develop a discussion and educate those with an interest in the commodity future markets. The commodity markets employ a high degree of leverage and commodity trading  may not be advisable for all investors.  Investing in the commodity futures could result in substantial risk.  If you are interested in reading other circulated articles, commenting  on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.

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