STOCKS, GOLD, AND OIL

The markets were not really fazed by the republican success in midterm elections against the democrats. Actually the rally continued on Wall Street and the DJIA hit new high again yesterday and S&P 500 came within a point from doing the same. The DJIA hits its 20th record close YTD 2014.

• DJIA: 17,484.5, +0.5%
• S&P 500: 2,023.5, +0.5%
• Nasdaq: 4,620.7, -0%

The DJIA chart below is obviously shows the strength of the bulls.

Gold is falling like a stone. Gold was down yesterday by 1,9% and closed at 1.145$, there is no doubt the short side trend is the real direction and pretty soon we are going to see the gold metal below 1.000$, maybe still in 2014. Technically the support is at 1.200$ level was taken out and door is opened for more downside movements. Until the stock markets are bullish there is no real relevance of any long side rally of the gold or silver market.

The WTI crude oil after a massive plunge since September, the American sweet crude oil prices jumped nearly 2% Wednesday after the inventory report. In terms of technical analysis the 80$ is a key support level for the crude oil, so we are expecting some rebound from this level next week and some kinds of consolidation around 80-90$ range in the next following weeks later on.

The BFM Assets Team.