Metals - Nov 09,2009
Sunday, November 08, 2009
by PitGuru.com Authors of PitGuru.com
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The Metals Pit Review For the week of November 9th, 2009 By PitGuru Daniel Cronin What a huge jump in the precious metals last week as word got out late Monday that India made a huge purchase from the International Monetary Fund for over 6.7 billion USD worth of Gold at an average price of $1,045/oz at the market between the dates of Oct 19th through Oct 30th. This led to the free-for-all rush into the precious metal that sent it higher by more than $55 to close out above $1,095 which was good for a 5.3% gain during the week. Silver followed through with an even better week, rallying 6.9% up to $17.36 following its big brother. Platinum charging up to $1,400 as the market gained 3.9%. Base metal Copper did not perform well as this market was actually flat trading at $2.96.5 The Gold market rally cannot be ignored and the biggest consumer in the Indian central bank made a huge statement with the announcement of their purchase. I believe this market will test the $1,100 level as the USD falls backwards against other major currencies. I would recommend taking a look at calls if the Gold market breaches $1,100. This will confirm more of the upside momentum. Copper has been very lackluster lately as it has had all the reason to blast through the resistance of $3.06 with a weakening USD and rallying equities. It has held a tight range between $2.90 and $3.00 but this market does not want to get out of this trading range. Watch the equity markets this week as this will be a huge indicator for the Copper market. The unemployment data was bad Friday but Copper did hold support at $2.90. 5 http://www.reuters.com/article/marketsNews/idUSSP37590020091103?pageNumber=1&virtualBrandChannel=11604 
***chart courtesy Gecko Software
Past performance is not necessarily indicative of future results.
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About the author
Daniel Cronin - PitGuru.com's Energies & Metals Guru Daniel Cronin has spent years on the floor of the Nymex as part of one of the largest energy floor brokerages in the business. His extensive experience stems from not only his Pit background but also through intense studying and implementation of complex technical analysis and market trading techniques via the mentorship of the now retired Ralph Acampora. Mr. Cronin brings subscribers a rare combination of book smarts and real world trading experience in one of the most volatile market sectors in the futures industry. Matthew Pierce - PitGuru.com's Grains Guru Mr. Pierce is a unique acquisition for Futures Press Inc. in that he has an unmatched level of real hands-on experience within the industry in addition to his floor trading expertise and top notch education at the University of Illinois College of Agriculture. Matthew has literally cultivated the perfect professional career as a grain expert by working with the industry's most recognizable companies such as Cargill, LaSalle Group, Conagra, Walsh Trading Inc. and many more. In addition to trading on the floor of the Chicago Board of Trade, Mr. Pierce writes what many in the business believe to be the best kept secret amongst trading reports available in the industry. Jurgens H. Bauer - PitGuru.com's Softs Guru Jurgens owns and operates his own order execution firm on the ICE trading floor. He has been a member since 1987. His firm, Jurgens Bauer and Associates, specializes in executing option orders for a wide array of customers and a variety of industry participants, including individual speculators, funds and members of the trade. While Jurgens has been an active member of the trading community he has also spent time since 2000 working at raising awareness of environmental commodities, educating industry professionals on emissions trading, brokering transactions between private counter parties and developing SO2 and NOx contracts for the NYMEX. Frank LaMantia - PitGuru.com's Financial Guru Soon to be Dr. LaMantia, Frank is not only one of the most educated traders on Wall Street, but also maintains an industry resume of substance and depth. Frank has worked extensively on an Institutional preferred stock syndicate desk, as a government bond specialist, and as a financial advisor all the while achieving multiple licenses in the finance field. With an extensive and impressive client list (including Citibank, Bear Stearns, Lehman Brothers, AG Edwards, Mesirow, UBS, and numerous Hedge Funds), Mr. LaMantia brings his one-of-a-kind background to his current occupation of full time trader.
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