Thought For A Day
Archives of “May 2021” month
rssCrude oil trades to a new session high at looks toward swing highs for May
Low price extended gains with crude oil contract up $1 on the day
The price of crude oil is trading to a new session high and in the process is now up one dollar on the day or 1.53% to $66.36. The high price just tick to $66.38.
Looking at the hourly chart, the price is running away from its sideways 100 and 200 hour moving averages at $65.01 and $65.13 respectively (blue and green lines). The next targets come in at the high from last week at $66.60 and the high from May 5 at $66.73.
Elon Musk impersonators have stolen more than $2 million in crypto since Oct
Impersonated twitter accounts
Not only can Elon Musk wipe value from investors digital currency wallets with one of his tweets, but the FTC is reporting that impersonators of Elon Musk have skimmed $2M in crypto from retail victims since October.
Impersonators, often using the same avatar images as Musk’s own twitter account but slightly misspelling his username, pretend to be Musk and messages followers to send currency to a specific wallet address in exchange for receiving a larger payment in return.
The scams violate Twitter’s policy against deceptive accounts. However, moderators have struggled to rein in the activity, and it remains prevalent on the platform.
Above is the real Elon Musk. Below are fake Elon Musks.
The same thing happens to my twitter account. I got this heads up last year. Instead of @gregmikeFX, the impersonators used @_gregmikeFX (with an underscore). They will then look to send a friend request, and then direct message with a deal the victims can’t refuse that involves sending money.
Don’t fall for it……
Major European indexes mixed to start the trading week
Mostly modest changes in the major indices
The major European indices are closing the day mixed to start the trading week. The end of day changes are mostly modest.
The provisional closes are shown
- German DAX, -0.1%
- France’s CAC -0.2%
- UK’s FTSE 100, -0.1%
- Spain’s Ibex, +0.1%
- Italy’s FTSE MIB, +0.4%
In other markets as London/European traders look to exit:
- Spot gold is trading at $1865.27, up $21 or 1.16%. The price traded at its highest level since early February 1 today with the high price reaching $1865.99 (and is also above its 200 day moving average at $1846.12).
- Spot silver is up $0.66 or 2.44% at $28.09
- WTI crude oil futures are trading up $0.77 or 1.18% at $66.14
- Bitcoin has moved back into negative territory and trades down $-430 or -0.98% at $43,626. The high price reached $46,646.15. The low price extended to $42,141
Disciplined Traders / Emotional Traders
The Crypto Energy Conundrum
The only trend line that matters in gold right now
Decision time.
For medium term gold traders this is the key trend line.
If you believe that high inflation is coming there will be a drive for hard assets like gold and gold alongside gold mining stocks could be about to break out higher. For those who are hyper gold bulls then go with the break of this trend line and stay long as long as price closes above this trend line is the trade. The bearish question marks being asked about Bitcoin and its environmental impact will only help gold.
What will change this outlook
Any signs of bond tapering from the Fed. In 2013 when the Fed announced bond tapering Gold fell sharply by around 20%. See chart above.
The takeaway
As long as inflationary fears are high and the Fed is sticking to their bearish script then gold longs make sense and use this trend line to manage risk.
Taiwan set to ban foreign entry from May 19th – June 18th
Ransquawk
The TAIEX fell hard to start the week as concerns rise over increasing COVID-19 cases. In a light data week, risk tone will be important and these rising COVID-19 cases has soured the risk tone to start the week. Risk still in the balance now, but no major moves as yet.
US 10 year yields return to key 1.60% level on Fed’s reassurances
Back to Wednesday’s level
The 1.50% -1.60% level is key in the US 10 year yields and has been significant for the last couple of weeks. Last week the strong US CPI data caused the US 10 year yields to break out of the 1.60% level.
This in turn sent the USD higher as investors speculated that the Fed would be forced into tapering bonds early. The Fed repeated, and have continued to repeat, that they will not be moved by one data point. This allowed the yields to drift back lower.
So now we have the basic battle. Inflation will spur concerns over an early bond taper. Weak US data will keep yields lower(and support gold higher).
For the MSFT traders – gossip mags going all-in on Bill Gates now
Given the scale of Microsoft, providing an update on Gates.
Fodder for the gossip mags, but yeah, MSFT traders might want to take note. Wall Street Journal report on an affair.
- Microsoft Directors Decided Bill Gates Needed to Leave Board Due to Prior Relationship With Staffer
- Microsoft Corp. board members decided that Bill Gates needed to step down from its board in 2020 as they pursued an investigation into the billionaire’s prior romantic relationship with a female Microsoft employee that was deemed inappropriate, people familiar with the matter said.
More at that link above, its the Journal so may be gated.
