Silver Market Recap Report for 7/16/2010

The silver market saw a big range down washout on the charts in what appeared to be part of a broad based physical commodity market selloff. With slack consumer sentiment readings, weak equities and weakness in gold the silver bulls were being presented with negatives from a number of angles during the Friday trade. Some players even suggested that silver was adversely impacted by the attempt to bounce in the US Dollar.

Gold Market Analysis Report for 7/16/2010

The October gold contract saw a noted range down failure on Friday and that had to disappoint the bulls that were hopeful of renewed flight to quality interest in gold in the wake of economic uncertainty in the US. With the dollar also managing to reject a fresh round of news highs and at times climb back into positive ground it is also possible that currency related market action was prompting some selling. The bear camp suggests that gold was simply displaying its physical commodity market focus in the face of the downgrade of the US economic recovery.  

After reading the silver and gold recap, 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.

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 clients in any commodity future market reviewed. 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 appropriate for all investors.  There is substantial risk in investing in commodity futures.  If you are interested in reading other published articles, commenting  on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.

The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a summary of each commodity’s traded price activity, and a look ahead at the schedule for the next day.  Market commentaries for soybeans, corn, wheat, silver and gold 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.