Chinese stocks were stronger overnight, as the markets were at least initially cheered by news of a pro-bailout party victory in Greece. European equities were also positive with the DAX and CAC 40 Higher but the IBEX was lower and at least a portion of the early moderate gains in the European markets were being pared. Early US equity market action was weaker as the trend of the overnight action was seemingly shifting back in favor of the risk-off crowd. Markets might have been discouraged by the lack of an Indian interest rate reduction overnight and they might also have been disappointed with Spanish yields reaching up to a Euro era high as that could keep many potential investors on the sidelines until the road forward is less bumpy. It is possible that an upcoming G20 meeting will serve to cushion the markets against the Euro zone debt contagion story, but in the mean time the markets are likely to be driven in both directions as the world waits to see if the Greeks can actually form a government with the newly elected factions.
The platinum bulls might be cheered by the capacity to carve out another fresh new high for the move. However, the platinum market wasn't able to sustain the upward track as the ebb and flow of confidence from the world economic stage has tempered the initial optimism from the Greek election results. Some traders might decide to hold onto long positions in hope of something positive from either the G20 or the FOMC meeting later this week. Some bull traders have even suggested that lack of movement from the Indian central bank last night was actually the result of an impending coordinated central bank action and that type of mentality might continue to underpin platinum and copper prices in the short term. The Commitments of Traders Futures and Options report as of June 12th for Platinum showed Non-Commercial traders were net long 17,185 contracts, an increase of 1,547 contracts. The Commercial traders were net short 18,979 contracts, an increase of 779 contracts. The Non-reportable traders were net long 1,794 contracts, a decrease of 768 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 18,979 contracts. This represents an increase of 779 contracts in the net long position held by these traders. The bulls retain a slight edge with close-in support on the charts moving up to $1,480 and little in the way of resistance seen until the $1,500 level. Unfortunately platinum might see an early low this week down around $1,471, before the promise of central bank action revs up bull sentiment again.