Phillip Streible, Chief Market Strategist
[TRANSCRIPT]
Good morning. It’s Monday, February 12th, about 6 a.m. Central Time. All right. The precious metals are higher after Friday’s mixed session. You have April gold down $3 at 2035. March silver up $0.42, 23 to March. Copper up one at 369 and the April platinum up $9 at 887. That palladium trade in 886 up about $16 as well. So they’re closer back again to parity.
So a couple of observations here. One Thursday, we saw that gold silver ratio back at that 92 level. If you look at on a daily chart going all of 2024, that’s been the high. And then after that hits that level, we see a big buyer that’s kind of been stepping into this silver market. And I think we got the that participant also here again, up $0.42, about 1.8% on the silver market, taking that ratio back down to about 88.
So a lot of times these have been coming in as big buyers and as silver and also the copper market ahead of Chinese stimulus. So we’ll have to see what happens there now, because the lack of Chinese stimulus and the weak Asian and European auto demand, I think that’s why platinum and palladium have kind of hit those 20, 24 lows.
But a real big bounce back. I mean, how close to low on palladium and platinum? We’re going to have to find out here. So it’s really that Chinese economic concerns that have those markets under some pressure. Now, the S&P and the NASDAQ did hit new, fresh contract highs, all time highs, record highs on Friday. So a little bit of a pullback here today.
Not too much at all. Seems like any of these kind of dips that we get in the equity markets are bought right up because of the level of cash that’s sitting on the sidelines and the fact that the earnings are continuing to expand the rallies, sort a broad base out. However, if you look at components of like the Dow Jones, for instance, there’s only 30 components you look at which ones are making higher highs, which ones are starting to kind of sell off here and break down, not making those new 52 week highs.
It seems like more and more of them are coming. So that’s why I think that that equity markets could be setting up for some kind of rollover. Now, looking at Tuesday, we’re going to have CPI come out and that’s going to be really the big number here for the week. That’s your big inflation number. We’ll see whether or not the Fed can gets any kind of tailwind.
As far as an interest rate cut. Now, speaking of Fed members, we’re going to have eight officials making appearances this week. So it’s going to be really a big week as far as what the Fed speakers are all saying. And then again, that monthly CPI report. Now, if you look at the manage futures here, as far as gold, the net longs 82,500.
They added 10,000 contracts. So managed money is continuing to pile into that gold market. And if you look at gold, it’s been really kind of trapped in a range here for most of the year and even beyond that. So your key levels for gold 2032 down to about 2027. But like if you look at like ADX stochastic somebody, they’re all very flat right now.
So this is the alligator waiting to wake up here. You look at the silver market. I like the fact that you had that higher low on the chart from it was the January 22nd low. We got down to about 22 bucks. This last low was a bit higher than that. Now we’re starting a swing back up over 23.
We got to get above 2350. That’s your 50 day moving average. Also your trend reversal point, then your next level resistance, 24 two. But it’s really been no man’s land for the silver market. Palladium and also platinum. Platinum has a bit of a lower a lower low on the charts and we’ll have to recapture that 900 level if we have any chance of threatening that 50 day moving average at 937.
So we got crude oil futures that are weaker here today. We get another push lower was start looking at coming back into that market as that market has worked in a nice cycle back and forth and then the dollar index 10402 last. So up three, we’re seeing some some of the foreign currencies are continuing to break down just a bit here.
Euro currency down 115 at 107 86, the Swiss franc and the Aussie dollar. I think those were ones that were putting pressure on the metals markets as well as they’ve been selling off. So. Got any questions? Give me a call. 31285873. All three number of futures options trading does them all risk been up suitable to investors. Good luck good trading.
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