Bloomberg Access:{OIAR<GO>}

WTI crude oil: On November 2, December 2016 and January 2017 WTI crude generated intermediate term sell signals after generating short term sell signals on October 31.

December WTI crude oil lost $1.33 on volume of 1,157,293 contracts. Interestingly, volume declined dramatically from the previous day, November 1 when the December contract lost 19 cents on volume of 1,476,887 contracts and total open interest declined by 10,923. On November 2, total open interest increased by 10,698 contracts, which relative to volume is approximately 50% below average. This is bearish and confirms the down trend.

As this report is being compiled on November 3, the December contract is trading 66 cents lower and has made a daily low of 44.61, which is below yesterday’s print of 44.96 and is the lowest price since 44.35 made on September 28. We recommend a stand aside posture.

Brent crude oil: On November 2, January and February 2017 Brent crude oil generated intermediate term sell signals after generating short term sell signals on October 31.

Heating oil: On November 2, December 2016 and January 2017 New York heating oil generated short term sell signals, but remain on intermediate term buy signals.

Euro: The December euro will generate a short term buy signal on November 3 provided the daily low remains above OIA’s key pivot point for November 3 of 1.1071.

Yen: The December yen will generate a short term buy signal on November 3 provided the daily low remains above OIA’s key pivot point for November 3 of .9677.

Dollar index: The December dollar index will generate a short term sell signal provided the daily high is below OIA’s key pivot point for November 3 of 97.607.

Gold:

December New York gold advanced $20.80 on strong volume of 262,503 contracts. Volume increased from November 1 when the December contract gained 14.90 on volume of 228,094 contracts and total open interest increased by 12,920. On November 2, total open interest increased by 12,602 contracts, which relative to volume is approximately 75% above average meaning aggressive new buyers were entering the market in large numbers and driving prices to a new high for the move of 1309.30, which is the highest print since 1315.40 made on October 4.

As this report is being compiled on November 3 the December contract is trading $5.70 lower after making daily low of 1286.20, which is slightly below yesterday’s print of 1288.40. Although, we think prices are headed higher, clients should keep in mind that a Clinton victory would likely cause gold prices to move lower, whereas a trump victory would likely create a spike up in gold prices. However, we think that trump has a zero chance of being elected president. Because we think a Clinton victory is imminent, we recommend that clients holding off on bullish positions until after next week’s election.

Silver:

December silver advanced 27.5 cents on volume of 89,267 contracts. Volume declined from November 1 when the December contract gained 62.2 cents on volume of 105,561 contracts and total open interest increased by a substantial 4,181 contracts. On November 2, total open interest declined by 1,599, contracts, which relative to volume is approximately 25% below average, but a total open interest decline on yesterday’s moderate advance is a slight negative. Yesterday December silver made a high of 18.750, the highest print since 18.940 made on October 4.

As this report is being compiled on November 3, the December silver contract is trading 27.3 cents lower after making a daily low of $17.995, which is above the November 1 print of 17.850. Our recommendation on holding off on bullish positions until after the election for gold is applicable to silver as well.