We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Gold futures in the December contract settled last Friday in New York at 1,351 an ounce while currently trading at 1,328 down about $23 for the trading week. For the 1st time in over a month prices traded lower and may have topped out in the short-term at 1,362 as profit-taking has ensued pushing prices lower this week. If you are long a futures contract, the chart structure has turned outstanding, and I would place my stop loss as an exit strategy below the 10-day low standing at 1,319 which is just about $10 away. Prices are still trading above their 20 and 100-day moving average as the trend remains higher in my opinion. The U.S. dollar traded sideways this week lending little support for gold prices as the story is all about North Korea and if or if they don't send a missile over the weekend sending prices higher or lower. There is still a high demand for physical gold at this time so continue to play this to the upside. Volatility in gold is relatively high as the higher price goes in a commodity, the higher the volatility as well that is why you can see $10/$15 trading ranges on a daily basis. Make sure you place the proper amount of contracts as I think the volatility will even increase throughout 2017. TREND: HIGHER
CHART STRUCTURE: EXCELLENT Continue reading "Weekly Futures Recap With Mike Seery"→
Hasbro Inc. (NASDAQ:HAS) is the third largest toy marker in the world and develops many household brands and games such as the iconic Monopoly board game, G.I. Joe figurines, Play-Doh, and My Little Pony. Hasbro also has exclusive contracts with major movie studios such as Disney and Universal to develop and distribute toys. Hasbro develops toys for many of the multi-billion dollar movie franchises such as Marvel Universe, Star Wars, Disney Princesses, Frozen, Transformers and Jurassic World. Throughout 2017, Hasbro has witnessed a bullish run, up nearly 27% year-to-date however the stock sold off from its 52-week high of $116 to $93 or a 20% slide after reporting it most recent quarterly results. Hasbro has many catalysts in the near term with major movie franchises coming into the fray with upcoming Disney releases: Thor: Ragnarok and Star Wars: The Last Jedi to round out 2017. In 2018, Black Panther, Avengers: Infinity War, Star Wars Han Solo spinoff and Ant-Man and The Wasp to highlight a few major movies. Taking into account Hasbro’s growth, back-half of the year catalysts, trading at a P/E of ~20, boasting a 2.4% yield and initiatives within Hasbro Studios to propel growth further presents a compelling buy after this recent sell-off.
Major Disney Catalysts Ahead
With Q3 well under way and Q4 on the horizon (historically Hasbro’s strongest quarters), I think Hasbro can produce strong quarters moving into the back half of the year. It’s noteworthy to point out that Hasbro has exclusive rights with Disney to produce Marvel Comics and Star Wars toys which last through 2020 and Hasbro is also the licensed doll maker for the Disney Princess line (Moana and Frozen are included) which started on January 1st, 2016 (Figure 1). Continue reading "Hasbro - Future Catalysts Post Sell-Off"→
Hello Traders everywhere. The S&P 500 has been threatening to break through the all-important 2,500 level all week. After Monday’s large gain it’s had four straight days of gains only to close just shy of the mark. Will it be broken this afternoon? Who knows, but we may be off to the races if it does.
Early this morning, North Korea fired a second missile over Japan, but traders and the markets just shrugged it off as old hat. Even the traditional havens are on the decline today with gold losing a little over .040% on the day.
The next big catalyst on the horizon could be the Fed Federal Reserve’s meeting on Sept. 19-20. The Fed is scheduled to announce its latest decision on monetary policy next week. Most market participants do not expect a rate hike. However, the central bank is projected to announce the unwinding of its massive $4.5 trillion portfolio.
This summer investors have witnessed firsthand how political policy changes can affect commodity and equity prices. In July both France and the United Kingdom announced it would ban the sale of diesel and gasoline powered cars by the year 2040. Other countries like Norway and India have set goals of even earlier dates to no longer have oil based vehicles sold by 2025 and 2030.
India had even taken it one step further and announced that not only will gasoline vehicles not be sold after 2030, but all gasoline vehicles will need to be replaced with electric and battery powered vehicles by that year.
The Netherlands wants to switch to electric vehicles by 2025 while Germany intends to make the change by 2030, but neither has set these plans in written law. But, the most notable announcement comes from China, a country that has over 300 million registered vehicles. Chinese authorities have not yet set a deadline for the end of sales of internal-combustion vehicles, but they have made it clear that they are working on a timetable.
While the U.S. and some of the other leading countries around the world have yet to come out and formally announce a date of when internal combustion engines will no longer be allowed, many believe there will come a day that all first world countries have such a ban.
OPEC’s grand plan to cut production to drain blotted global oil inventories was a miserable failure in the first half of 2017. Total OECD stocks actually rose by about 75 million barrels by end-June from when the deal went into effect beginning in January.
But seasonal oil demand shifted into high gear in July and August. Inventories in the U.S., the largest oil consumer and the most data-transparent country in the world, dropped about 35 million barrels, given record-high demand for crude at U.S. refineries and relatively strong mid-summer product consumption.
This brief hiatus to OPEC’s failure to drain stocks in the first half of 2017 was already set to reverse when refineries performed their fall maintenance, reducing crude demand, and the summer driving season came to a close. But the two hurricanes, Harvey and Irma, accelerated the demand-destruction process.
About 3.2 million barrels a day (mmbd) of refinery throughputs were reduced by the Gulf hurricane, while petroleum product demand dropped 1.5 mmbd from the prior week. The impact of Irma on Florida and elsewhere in the Southeast is still uncertain and ongoing. Goldman Sachs has estimated that U.S. petroleum product demand may be nearly 900,000 b/d lower in September, and 300,000 b/d lower in October, as a result of the storms. Crude demand may average another million barrels per day lower due to problems reported at some refineries. Continue reading "Hurricanes Delivered A One-Two Punch To OPEC"→