MINDENAO GOLD MINING (fka MDGM)

[Alex Chory]

from Saxobank futures trading strategies.........

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Published: Jan. 26 2006, 09:05 GMT

Brent falls on mixed inventory data
..... and the World's energy watchdog IEA stated it would provide reserves if Nigerian & Iranian exports would be cut.



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Energies
Brent Crude continued it's slide yesterday, even on the back of some mixed inventory data. Crude Oil inventories dropped more than expected, however, the distillates and products showed a heavy build. In hindsight, it appears that markets laid the emphasis on products.

Any geo political considerations did not provide any support yesterday, as the World's energy watchdog IEA stated it would tap emergency government reserves if Nigerian & Iranian exports would be cut.

Gasoline demand is down and stocks grew by 3.2 mill brls, distillate stocks still rose by 1.8 million brls. Heating oil stocks rose 1.6 million brls. "US crude oil imports continue to decline, however, refinery demand is also falling along with utilization rates and oil inventory levels are well above average" said an analyst.

Although the market showed some very short lived uncertainty over the inventory data yesterday, it continued it's downward spiral, with Brent Crude reaching a low at 63.87. We see this downmove as in complete, with fresh selling opportunities above 64.75 and 65.10 targeting 63.87. A sustained break above 65.25 puts Brent back in bullish territory.

Trade Strategy: Short March Brent Crude (LCOH6) at 65.96. Stop below Break-even. Target 63.86. Trade closed at 64.86.


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Metals
Silver outperformed the rest of the precious metals market yesterday, making consistent new highs throughout the day. We expect this to be the general theme throughout the day in metals.

Beware of a break below 561.00 in April Gold, this constitues a trend break and could leaves the April contract in danger of further losses.

Trade Strategy: Stand aside


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Treasuries
Yesterday's sell off on 10yr T-note started slowly and gained momentum into the close. The global pictured deteriorated significantly after a break below 109-00, it now open the possibilities to retest Dec 5 th low at 107-30 on the medium term.

Today´s opening can be firmer but if durable goods come as expected we could quickly see some further weakness. For today' range: Resistance at 109-00 Support at 108-23.

Yesterday was the sixth consecutive session with a lower closing on Bunds. Bunds are oversold in the short term. The 120.50 level is a good support but if broken we will target the 120.02 level. Look at choppy trading at the start, we favor a range 120.28 - 120.85.

Trade Strategy: Neutral.


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