As reported earlier, the Indian gold buying strike [2]is now over, and just as we predicted, gold futures are off to the races right out of the gate, with the yellow metal surging $10 just as the electronic market broke for trading, touching $1647, about $30 higher compared to the liquidation rout from three days ago (has anyone seen Gartman [3] today?). Unfortunately, while Indian purchases of gold are sure to provide a bid under the metal, their appetite for stocks appears to not have risen, and as a result, ES is continuing Friday's downdraft lower, with the E-Mini touching on 1372 in the first minutes of trading. Finally, with Brian Sack no longer there to facilitate the overnight ramp higher, this just may be one of those overnight futures sessions where we do not see a miraculous melt up on absolutely nothing.
Gold:
[4]
ES:
[5]