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 are trading far below their 20 and 100 day moving average plummeting for the 2nd consecutive trading session down another $30 at 1,168 an ounce hitting a 4 1/2 year low as the Japanese government stated that they are going to engage into more quantitative easing sending the Japanese Yen sharply lower against the U.S dollar therefore pressuring the precious metals today. Gold futures settled around 1,231 last Friday finishing down around $60 dollars as the trend is clearly to the downside, however the chart structure is very poor at the current time so I’m sitting on the sidelines in this market, however I am certainly not recommending any type of bullish position in the gold market as prices go lower in my opinion with a possible retest of $1,100 here in the near future. All of the interest is back into the S&P 500 once again as the stock market hit an all-time high as money is flowing out of the precious metals and many of the commodity markets and putting it back to work in the stock market and I don’t think that trend will end any time soon as the months of November and December are historically bullish for the S&P 500 and bearish for the gold market so continue to play this to the downside and take advantage of any rally making sure that you place the proper stop loss. As I had written in previous blogs I was always concerned of the fact that gold prices were not rallying with all the problems with Isis and numerous other catastrophes throughout the world & that made me nervous as prices now look very weak as there is no reason to own gold at the current moment.
CHART STRUCTURE: AWFUL [Read more...]