Traders Stay Alert!
By Mark O’Brien, Senior Broker
General:
High volatility across the major financial commodities carried forward from last week, particularly Monday. Price ranges coming into today’s close include over 1200 points in the E-mini Dow Jones ($6,000 per contract), ±$82 for Dec. gold ($8,200 per contract), over 10,000 points for Bitcoin futures ($10,000 per contract), over 225 points in the E-mini S&P 500 ($11,250 per contract) and more than 1,200 points for the E-mini Nasdaq ($12,000 per contract).
If the rest of the week sees a falloff in unevenness among these markets – an unlikely presumption – it’ll be a short rest. Next week another raft of economic data comes to the markets, including key inflation measurements with the release of the U.S. Labor Department’s Producer and Consumer Price Indexes (Tue. and Wed., respectively) and the Census Bureau’s Thurs. report on Retail Sales.
The following week, traders will turn their eyes and ears toward Jackson Hole, Wyoming and the world’s most exclusive economic get-together: the Federal Reserve Bank of Kansas City-hosted Economic Symposium. And once again, the most hotly anticipated event will be a speech by Federal Reserve chair Jerome Powell that typically takes place on Friday morning. Often his speech is a chance for the central bank to send a signal about monetary policy and in the context of the recent shakiness in financial markets, his words will make headlines.
So much for summer doldrums.
Energies:
September crude oil jumped ±$2.00/ per barrel today on the heels of a six-week ±$10 per barrel slide from ±$83/barrel to $73/barrel going back to early July. The rally ensued after data showed a bigger-than-expected draw in U.S. crude stockpiles which have declined for six straight weeks. On the demand side, worries about weak oil demand in China persisted. Reports today showed that China, the world’s biggest importer of crude reported its lowest average daily import level for the month of July since September 2022. China’s imports of other major commodities including iron ore, coal, copper and natural gas have also lost momentum or at best remained flat in recent months.
Daily Levels for August 8th, 2024
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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.