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 February contract settled last Friday around 1,190 while currently trading at 1,223 this afternoon near a 6 week high as I’ve been recommending to sit on the sidelines in this market as volatility is way too high and the risk is also way too high in my opinion, however it does look to me like a bottom has been placed here in the short term with gold spiking from the 1,140 level last week and then rebounding around 100 dollars in the last 7 trading days which is incredibly impressive as the stock market is sharply lower this afternoon sending money back into the gold and precious metal sector. Gold futures are trading above their 20 but still below their 100 day moving average telling you that the trend is lower as I will remain neutral as the chart structure is awful at this time, however if you do think gold has bottomed my recommendation would be to buy at today’s price level while placing your stop loss below 1,186 risking around $37 or $3,700 per contract plus slippage and commission but the risk is too high & does not meet my criteria so I will wait for better chart structure to develop but I have to admit its sure fun to watch.
CHART STRUCTURE: AWFUL [Read more...]