Market Brief – Wednesday 3/6/19

Stocks were down on light volume as corporate share buybacks lose their muster when trading volumes fall. Treasury yields were also down across the board, with 5- and 10-year Treasury yields closing under their 50-day moving averages. Thirty-year Treasury yields are not far behind.

The EIA reported crude inventories as Crude +7.07mm (exp +1.45mm), Cushing +873k (exp +1.63mm), Gasoline -4.23mm, and Distillates -2.393mm. This large build in crude oil validates that global growth is slowing. Crude oil traded lower following this report.

Physical gold was flat on the day, but the large gold mining ETF crashed below its 50-day moving average, while the large silver miners crashed below its 50- and 200-day moving averages. This is setting up a move lower in the miners, which should bottom at a price level where the “Smart Money” has been buying.

Oil and gas producers also closed under their 50-day moving average, which suggests a retest of their December lows is coming.

Agricultural commodities looked like they were bottoming on Monday, as Tuesday saw a nice rally. Today prices fell and closed over Monday’s closing price.

My apologies for the short update, as my wife is recovering from a very painful, but necessary back surgery that was about 8.5 hours long.