{"id":36509,"date":"2016-10-10T23:56:27","date_gmt":"2016-10-11T06:56:27","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=36509"},"modified":"2016-10-10T23:56:27","modified_gmt":"2016-10-11T06:56:27","slug":"gold-and-silver-bid-for-a-bottom-in-wake-of-september-jobs-report","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2016\/10\/10\/gold-and-silver-bid-for-a-bottom-in-wake-of-september-jobs-report\/","title":{"rendered":"Gold and Silver Bid for A Bottom In Wake of September Jobs Report"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. <a href=\"http:\/\/seekingalpha.com\/article\/4010977-gold-silver-bid-bottom\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>On October 5th, <a href=\"http:\/\/drduru.com\/onetwentytwo\/2016\/10\/05\/gold-silver-break-down-post-brexit-roundtrip\/\" target=\"_blank\">I noted<\/a> how SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) both completed post-Brexit roundtrips as rumors of a eurozone tapering of QE triggered a fresh wave of selling in the precious metals. I used this event as another opportunity to examine the case for a (short-term?) topping in GLD and SLV. The trading action immediately before and after <a href=\"http:\/\/www.bls.gov\/news.release\/archives\/empsit_10072016.htm\" target=\"_blank\">the U.S. jobs report for September, 2016<\/a> provides an opportunity to trade on a relief rally as GLD and SLV make a bid for a bottom.<\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36511\" aria-describedby=\"caption-attachment-36511\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_30DayFedFundFutures.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_30DayFedFundFutures.png\" alt=\"Financial markets seems to be settling in for a December rate hike from the Fed.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36511\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_30DayFedFundFutures.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_30DayFedFundFutures-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36511\" class=\"wp-caption-text\">Financial markets seems to be settling in for a December rate hike from the Fed.<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"https:\/\/www.oanda.com\/forex-trading\/analysis\/commitments-of-traders\" target=\"_blank\">CME Group FedWatch<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>Per previous history, the Fed futures is closing on near certainty for a December rate hike. <a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/12\/16\/t2108-update-151215\/\" target=\"_blank\">Futures sat around 80% the day before the Fed&#8217;s December, 2015 rate hike<\/a> and were in the high 60s a month prior. In other words, I do not think higher levels from here really communicate much more certainty in the minds and actions of traders. {snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36512\" aria-describedby=\"caption-attachment-36512\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_DXY0.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_DXY0.png\" alt=\"The U.S. dollar&#039;s impressive breakout above its 200-day moving average (DMA) may have come to a quick end with a post jobs report fade.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36512\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_DXY0.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_DXY0-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36512\" class=\"wp-caption-text\">The U.S. dollar&#8217;s impressive breakout above its 200-day moving average (DMA) may have come to a quick end with a post jobs report fade.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36513\" aria-describedby=\"caption-attachment-36513\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GLD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GLD.png\" alt=\"SPDR Gold Shares (GLD) tries to hold support at its 200DMA despite two consecutive closes marginally below this critical trendline.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36513\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GLD.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GLD-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36513\" class=\"wp-caption-text\">SPDR Gold Shares (GLD) tries to hold support at its 200DMA despite two consecutive closes marginally below this critical trendline.<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_36514\" aria-describedby=\"caption-attachment-36514\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_SLV.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_SLV.png\" alt=\"iShares Silver Trust (SLV) bounces off its 200DMA support in picture-perfect form two consecutive days.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36514\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_SLV.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_SLV-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36514\" class=\"wp-caption-text\">iShares Silver Trust (SLV) bounces off its 200DMA support in picture-perfect form two consecutive days.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36515\" aria-describedby=\"caption-attachment-36515\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GDX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GDX.png\" alt=\"Can support at its 200DMA stave off the downward momentum from the recent 50DMA breakdown for VanEck Vectors Gold Miners ETF (GDX)?\" width=\"550\" height=\"375\" class=\"size-full wp-image-36515\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GDX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_GDX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36515\" class=\"wp-caption-text\">Can support at its 200DMA stave off the downward momentum from the recent 50DMA breakdown for VanEck Vectors Gold Miners ETF (GDX)?<\/figcaption><\/figure><br \/>\n<strong>Source for charts: <a href=\"http:\/\/www.freestockcharts.com\/platform\/v1\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>I am a little more comfortable trading around my core long positions in GLD and SLV because speculators have cooled off a bit from recent highs in speculative positions. {snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36517\" aria-describedby=\"caption-attachment-36517\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAU_USD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAU_USD.png\" alt=\"Gold speculators take net longs back to levels last seen four months ago (which in turn match the peaks from 2011 - not shown)\" width=\"550\" height=\"550\" class=\"size-full wp-image-36517\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAU_USD.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAU_USD-150x150.png 150w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAU_USD-300x300.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36517\" class=\"wp-caption-text\">Gold speculators take net longs back to levels last seen four months ago (which in turn match the peaks from 2011 &#8211; not shown)<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_36516\" aria-describedby=\"caption-attachment-36516\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAG_USD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAG_USD.png\" alt=\"Silver speculators take net longs back to levels last seen four months ago (which are still higher than anything seen since at least 2008)\" width=\"550\" height=\"550\" class=\"size-full wp-image-36516\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAG_USD.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAG_USD-150x150.png 150w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/10\/161007_cot-XAG_USD-300x300.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36516\" class=\"wp-caption-text\">Silver speculators take net longs back to levels last seen four months ago (which are still higher than anything seen since at least 2008)<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"https:\/\/www.oanda.com\/forex-trading\/analysis\/commitments-of-traders\" target=\"_blank\">Oanda&#8217;s CFTC Commitments of Traders<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p>Going forward I do not expect a rally in GLD or SLV to top recent highs. The most likely catalyst that could get both over the hump may, ironically enough, be an actual rate hike from the Fed. {snip}<\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long GLD, SLV (shares and call options)<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. <a href=\"http:\/\/seekingalpha.com\/article\/4010977-gold-silver-bid-bottom\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. Click here to read the entire piece.) On October 5th, I noted how SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) both completed post-Brexit roundtrips as rumors of a eurozone tapering of QE triggered a fresh wave &#8230; <a title=\"Gold and Silver Bid for A Bottom In Wake of September Jobs Report\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2016\/10\/10\/gold-and-silver-bid-for-a-bottom-in-wake-of-september-jobs-report\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1303,199,20,62,21],"tags":[1688,299,1698,200,24,25,354,1591,500],"class_list":["post-36509","post","type-post","status-publish","format-standard","hentry","category-bottom","category-commodities","category-forex","category-technical-analysis","category-u-s-dollar","tag-cftc","tag-dxy0","tag-gdx","tag-gld","tag-gold","tag-silver","tag-slv","tag-u-s-dollar","tag-uup"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gold and Silver Bid for A Bottom In Wake of September Jobs Report - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2016\/10\/10\/gold-and-silver-bid-for-a-bottom-in-wake-of-september-jobs-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold and Silver Bid for A Bottom In Wake of September Jobs Report - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. 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ONE-TWENTY TWO: Trading Financial Markets","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2016\/10\/10\/gold-and-silver-bid-for-a-bottom-in-wake-of-september-jobs-report\/","og_locale":"en_US","og_type":"article","og_title":"Gold and Silver Bid for A Bottom In Wake of September Jobs Report - ONE-TWENTY TWO: Trading Financial Markets","og_description":"(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. Click here to read the entire piece.) On October 5th, I noted how SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) both completed post-Brexit roundtrips as rumors of a eurozone tapering of QE triggered a fresh wave ... 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