Choppy Movements And Inclinations In Markets Seem To Contradict Each Other Until We Consider The Chief News For the Next Couple Of Weeks

Despite a bit of U.S. dollar weakness in the face of raging volatility, gold could not muster enough strength to rise. Rather it fell sharply, down over $9.00. Silver fell almost 1.5% on the day, but platinum and palladium rallied.

(As of 3:30 in New York, the dollar and euro are even for the day.)

Oil finally found its legs, many traders and investors sensing the worst is over. West Texas Intermediate rose 1.85% but Brent, buffeted by a bad day in European equities, fell modestly.

However, crude may have just been bouncing off a temporary, nearly 11-year old low that many analysts felt had been reached too quickly. So, we had not just bargain hunting but short covering.

If we are finished for the moment with testing lower and lower levels for the moment, we will probably revisit them come February when once again, refineries go into maintenance mode for a two-to-for-week cycle.

In an analysis note, Morgan Stanley said OPEC supply is likely to increase by 1 million barrels per day next year. It said that "Almost the entirety of added supplies in 2016 will come from Iran, Iraq and Saudi.” Iran is about to ramp up supply once nuclear-weapons-related sanctions are lifted on its crude exports and exports of all types of products are expected to increase to 770,000 barrels per day.

On the equities side, only Shanghai in Asia seemed to strike an optimistic note but that was based mostly on improving scenarios in the Chinese financial sector and a positive report on the yuan’s longer-term stability.

Otherwise, he Nikkei and Hang Seng as well as all European bourses faded lower.

U.S. indexes were up moderately, although there were no definitive statements being made by investors. Things remain volatile, although not dangerously so.

The unsteadiness in the stock market is being driven by fear of what might happen in a few days after the Fed issues a statement concerning what its decision is on a rate liftoff.

And, of course, we have the end of year literally right around the corner after the Fed news release. There are only 11-1/2 trading days left in the year, the half day coming on Christmas Eve, December 24.

The natural as well as business inclination is to stay out of harm’s way, relax and start fresh in the New Year.

Wishing you as always, good trading,