Oil futures finished the week closer to 90.00 than 100.00. This continues to perplex me as the demand for energy seems to continue to increase while the supply side of the equation has the potential to be impacted by a gamut of potential issues. OVX moved up on the week, mostly in the early part of the week, based on a move lower in oil futures.
The gold market appears to be at a crossroad and not the one that I would have expected. GLD is approaching the bottom end of the 120 – 130 range as shown in this GLD weekly price chart that covers all of 2014.
GVZ moved higher as well most likely based on a potential break of the support line in the chart above.
Sometimes what is not said may be as important as what has been said. This past week at the CBOE RMC Europe 2014 conference I never once heard anyone mention gold or oil which was not the case in 2014. This time last year there was no real interest in emerging markets and those markets have been rock stars in 2014 (at least so far) and came up a few times in conversations this past week. The low levels of volatility, despite the rise in both last week, sort of quantify this last of interest. Often the next area of trading opportunity is not where the masses are looking and the crowd isn’t watching GLD or USO too much these days.