Markets started 2017 in a volatile way. After a strong ‘risk on’ sentiment, the intraday trend reversed sharply.
Stock indexes were close to all-time highs as the trading day started. Soon after the bell, they lost one percent, only to close the day in green.
Crude oil played an important role in the intraday reversal. As soon as crude hit $55, it fell sharply to close the day at $52.52, an intraday peak to bottom change of more than 5 pct! We wrote about the importance of this price level of crude oil in this post Energy Stocks Will Be Very Bullish In 2017 If This Happens.
The intraday reversal was clearly visible in the fear driven assets: Treasuries and precious metals.
Treasuries went higher as soon as crude started falling.
The same accounts to gold and silver.