European stocks are all up today. FTSE 100 is up +0,90%. CAC 40 is up +0,66%. DAX jumps +1,06%. Commodities are going in the opposite direction. They`re all in a red territory. Copper down -0,58%. Silver -0,64%. Crude Oil (brent) -0,31% and gold is down -0,17%.
Many hedge funds are lowering their bullish bets on gold. As things are looking better in the U.S and Europe, the demand for the precious metal remain non-enthusiastic. The reason is that both economies are gradually improving.
Most hedge funds are fund of funds. Those hedge funds are massive money pools and they move the money from fund to fund. It depend on the best hedge funds the last few months. If one of the funds are doing it bad, they simply dump it and move on to another one.
All the hedge funds must make money every month and many of them have a short-term strategy. Those hedge funds do not pay much attention to fundamentals and this is a big reason why program trading became a dominant force over the past decade.
Many of those funds are massive money funds and a few of them can move the market. Most of the moves is short-term moves, but they will all jump on the wagon once the god prices are going up again.
Many Asian and European markets were closed yesterday due to the Easter holiday and the Russia-Ukraina crises has de-escalated right now. That`s why the markets have been so light now. Lack of fresh bullish news makes the gold go down. This is technical selling and some investors say you have to be bold to own some gold now.
The fear is down as the VIX slid yesterday -0,82% to 13,25. The last top of the VIX was in September 2011 as it reached 47. This is good for the stock market and the U.S markets seems to open up today.
Take a look at Netflix today. It will skyrocket! What about the home sale recovery. Is it strong or weak? Look for the reports at 10:00 a.m today. It`s even more interesting tomorrow: earning reports from Apple, Zynga and Facebook.
Reports today:
10:00 am EST Existing Home Sales
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