PM Daily Market Commentary – 4/16/2014
Gold closed down -0.40 to 1302.30 on moderately heavy volume – silver was up +0.05 to 19.63 on moderate volume. Gold traded sideways within a small trading range, while silver moved around a bit more, trying to rally along with copper at around 0820 EDT and more or less failing.
Copper had a big spike higher at 0820 EDT – stopping out a large number of shorts, and recapturing the ground lost yesterday. I'm not sure what the big rally was about, but it definitely dragged silver higher at least for a time.
The buck closed up +0.02 to 79.90. Again, the dollar seemed to be a non-factor today.
GDX traded lower, closing off -0.92% on relatively light volume, while GDXJ closed off -0.36% on very light volume. Mining shares didn't have much of a bid today, but neither were the shorts that eager to jump on the miners. Given the relatively large sell-off during the past 5 sessions, it seems unfortunate that buyers aren't showing up to buy the mining shares at a discount.
SPX opened up and continued climbing today, moving +19 to 1862 and easily through its 50 day MA on moderately heavy volume. If we just look at SPX, the price action for the past few days looks quite bullish. If we look at the other, higher risk instruments (biotech, tech leaders, etc), things look less bullish. However, that doesn't mean standing in front of the SPX freight train as it pounds down the tracks to yet another all time high – it just injects a note of caution into an otherwise bullish picture.
From the PM standpoint, the day was pretty uneventful. Money seems to be flowing back into large cap stocks. Level to watch on SPX: 1872 – the previous lower high.