Some of us with more of a stomach for risk are considering betting on oil’s recovery as production gets shut in and the economy gradually reopens. After all, a couple of weeks ago prices crashed and the front-month WTI futures contract went negative for the first time in history. In […]
Silver’s Epic Mean Reversion
Silver is powering higher in a new bull market after getting clobbered in March’s stock panic. Investors have been flocking back to silver in the aftermath of that ultra-rare extreme-fear event. That brutal selloff also utterly wiped out speculators’ upside bets in silver futures, giving them massive room to buy […]
Oil Is Searching For The Bottom
The oil is still searching for its bottom. On Wednesday morning spot contracts declined by 18% to $19.5 at one point. From today, the CME exchange introduces options with a negative strike price on Crude futures, suggesting that the Monday situation can be repeated. Most worryingly, following the decline in […]
Gold Trend Reversal Towards Its All-Time High More And More Likely
Since my last analysis, spot gold and GLD indeed sold off down to US$1,450 and US$136.12. However, thanks to worldwide “whatever it takes” measurements by central bankers and governments spot gold prices quickly came back roaring up to US$1,747 just last week. Even though this unprecedented money expansion will spark […]
Gold Arrives At The Threshold For Hyperdrive
Gold Scoreboard In concert with Federal Reserve Chairman Jerome Powell’s Thursday announcement of a $2.3 trillion monetary injection for the U.S. economy — on top of the federal government’s $2.2 trillion economic aid package and with even more trillions tentatively to be tendered — a valued core reader of The […]
Global Shutdown And Gold
Have you read Ayn Rand’s novel Atlas Shrugged? The main theme of the book is that – overwhelmed by growing statism – entrepreneurs at one point say finally “basta!” and announce a strike. They disappear, leaving their businesses to their fate. The symbolic Atlas who carries the world, shrugs. As […]
If Oil Stabilizes, Will Sugar?
On the radar: Sugar prices have softened due to ethanol demand destruction, but if oil stabilizes so will sugar. sugar-calls BUY JULY SUGAR 11.25 CALLS. The seasonal low for July sugar isn’t due for another two to three weeks but given the fact that prices are approaching long-term support, a […]
WTI: Negative Dynamics
Despite the opening of today’s trading day with the gap down (due to the fact that the OPEC+ teleconference was postponed to Thursday), during the Asian session, oil prices rose again. At the beginning of today’s European session, WTI crude oil traded near 27.00 mark. OPEC+ was expected to resume […]
Global Oil Demand Plummets, Threat To Storage Capacity
In the past two weeks, analysts have cut their global oil demand forecasts by a staggering 225%. Never in history has the world experienced such a massive reduction in global oil consumption. The situation in the world oil industry is changing so fast; the market hasn’t fully digested the tremendous […]
Two Leading Indicators For Crude Oil Point To Higher Prices
On Friday morning I created these charts on the price of crude oil, the energy sector stocks XLU, and also the Canadian dollar, which I think to paint a clear picture of what to expect for the price of crude this coming week. I always like to look at the […]