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 is currently trading at 1,252 after settling last Friday in New York at 1,226 up about $26 for the trading week breaking out to a five-month high. Money flows are coming out of the U.S equity market which is sharply lower once again today while now entering the precious metals across the board as I am looking closely at a bullish position in silver as well as it seems to me that the precious metals are going higher. I am now recommending a bullish position from around the 1,252 level and if you're going to take this trade place the stop loss under the 10-day low which now stands at 1,216 as the risk is around $3,600 per large contract plus slippage and commission or about $800 per mini contract. Gold prices are trading above their 20 and 100-day moving average as the trend is clearly to the upside as this commodity is used as a flight to safety as investors are getting spooked by the volatility in the S&P 500 while taking money out of that sector and heading into gold. The chart structure will start to improve later next week as the monetary risk will also be lowered as the volatility remains relatively low with the next major level of resistance all the way up around the 1,275 level as I think there is room to run as I have not recommended a gold position for quite some time
CHART STRUCTURE: IMPROVING
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