Subdued Equity Markets as the Precious Metals Battle to Hold Value

In subdued trading on the post-Thanksgiving half-day session, U.S. equities are managing to eke out some gains in spite of a 3.5% fall of Disney shares. Lower crude oil prices once more dented share prices on the Dow and S&P 500.

But, it might be that a lack of faith in Chinese and European stock performance also played a part. All major indexes in both regions were in the red today, although Shanghai was of almost 5.5%, not a good sign.

Two events wait in the wings next week. Early on, we’ll know the results of Black Friday, which we’re now seeing as more like a charcoal gray color. From the early reports, indications are that the kick off of the Christmas season is getting off to a strong start.

The second data even we need to reckon with is the November employment report. The robustness of the report may put the final nail in the rate raise coffin, one way or another. Employment will have to be very weak for the Fed not to go ahead with rate liftoff.

Reflections of sentiment from investors and traders concerning the report and the rate rise can be found in an eight-month high in the U.S. dollar and a six-month low in gold prices. Gold also has a number of technical issues that have kept prices down.

The bright spot on our own trading front has been the buy into the S&P 500 E-Mini. It’s a great way to head into the holiday season. We also are issuing a conditional sell in Gold (watch the Weekend Review for details).

We hope the rest of your holiday is relaxing and pleasant.

Wishing you as always, good trading,