February 8, 2017
One big sign this commodity’s on the verge of an ‘epic comeback’
By Barbara Kollmeyer
Investors who have been busy watching stocks go nowhere, and complaining about it, should maybe feast their eyes on another big asset class. Like commodities.
Oil has been under pressure since the API said late Tuesday that U.S. crude stockpiles spiked by 14.2 million barrels last week. If the EIA data due later follow that trend, it should mark the biggest weekly gain in U.S. supplies since October. Note, the EIA also said Tuesday that the global oil glut is disappearing faster than expected.
And any pickup in pressure on crude comes as hedge funds make record bets that oil prices will rise — something that’s been going on a while.
“Clearly, a position adjustment from a very crowded trade is in play,” Chris Weston, chief market strategist at IG, told clients in a note.
Raoul Pal @RaoulGMI
#oil - It if breaks $50, it is likely to test the trend line at $44...Im getting closer to pulling the trigger on a short.
1:14 PM - 7 Feb 2017
Our call of the day deals with another big commodity. From the Daily Reckoning blog, Greg Guenthner thinks gold prices GCH7, +0.54% could jump 20% over the next several weeks.
Guenthner says gold’s advance in the first six weeks of 2017 has “perfectly mirrored” action seen in the same period in 2016. The precious metal is looking at its fifth-straight winning session on Wednesday , as signs of instability in Europe add to growing skittishness over POTUS’s political agenda.
“Gold has posted gains of 6% through the first week of February for the second year in a row. In both cases, gold bounced off a late December bottom. And in both cases, the gold rally dipped in late January — only to rocket to new highs at the start of February,” Guenthner says.
And if this keeps up, as his chart shows, gold could be ready to repeat last year’s “epic comeback,” he says.
What could stand in gold’s way? Unrelenting equity gains (see our chart of the day for a dissenting view) and a dollar that keeps moving up.
http://www.marketwatch.com/story/one-big-sign-this-commoditys-on-the-verge-of-an-epic-comeback-2017-02-08
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 
