Monday September 09, 2013 08:54Frid

Monday September 09, 2013 08:54

Friday’s job creation numbers were disappointing with many of the pundits expecting the number to come in north of 200,000. The reaction to the number was again “doubt” on whether the Fed would move next week on tapering. Add the weekend, “square the book mentality,” and the market was short ahead of the numbers and the “Syrian” unknown and the shorts got squeezed. The momentum, however, did not carry into the overnight market and we find ourselves with a softer tone this morning.

I do not expect the market to position aggressively ahead of the Fed’s meeting. Technically, the market is neutral. The $1,397 level is the target for the bulls and the bears need a break of $1,358. If you need to trade ahead of the Fed, I suggest $1,378 may be an entry point for a “high spec” long trade but expect volatility, as most traders do expect a tapering, albeit very modest, announcement.

without language that reductions are entirely data dependent.
By Peter Hug
Global Trading Director
Kitco Metals Inc.