US - China Trade Tensions Linger

Hello traders everywhere. On Friday, President Donald Trump announced that the U.S. would impose tariffs that could impact up to $50 billion worth of Chinese goods. According to Washington, the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices."

That move by President Trump prompted China to retaliate, with Beijing announcing its selection of duties on U.S. goods. The Chinese State Council's commission on tariffs and customs stated that a 25% tariff would occur in early July on $34 billion of U.S. products.

US - China Trade Tensions

The Chinese retaliation news helped to extend the Friday losses into Monday trading with the DOW dropping over 240 pts before bouncing off the lows with the S&P 500 and NASDAQ following suit.

Crude oil has bounced back from a tough Friday gaining over 2% on that day after as OPEC is said to be discussing a smaller-than-expected output increase with Russia. All eyes will be on the Friday OPEC meeting where Russia and Saudi Arabia are set to consider increases in crude oil production.

Key Events To Watch For This Week

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Weekly Futures Recap With Mike Seery

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

Gold futures in the August contract are ending the week on a sour note down $26 an ounce currently trading at 1,284 filling the gap that I've talked about in previous blogs that occurred on December 21st at 1,284 as this market has now hit a 6-month low. The U.S. dollar continues to hover around its contract high as that's the main culprit for depressed prices as gold continues its bearish momentum in 2018 also pushing silver prices down $0.60 this afternoon as that is my only precious metal recommendation at the current time. Gold futures are trading under 20 and 100-day moving average telling you that the trend is to the downside breaking out of a 4-week consolidation as the volatility certainly has expanded as the entire commodity markets across the board today are lower as the Trump tariffs talks are throwing a wrench into the closet and who knows how this situation is going to end up. The next major level of support stands at 1,260 as there is still room to run to the downside in my opinion as all of the interest still remains in the U.S. equity market which is also lower today, however the NASDAQ 100 did hit all-time highs once again this week as money flows continue to come out of gold and into stocks as I don't see that situation changing as I still believe the stock market will remain strong for the rest of this year.
TREND: LOWER
CHART STRUCTURE: SOLID
VOLATILITY: INCREASING

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China Tariffs Stop Stock Markets Momentum

Hello traders everywhere. The stock market dropped Friday after the Trump administration announced its China tariffs saying it will impose a 25% charge on up to $50 billion in Chinese goods. On that news the DOW dropped over 200pts, the S&P 500 dropped 0.4% as tech and industrials fell and the NASDAQ has backed off its all-time highs to shed 0.35%.

In a statement Friday, President Donald Trump said the measures would affect Chinese goods "that contain industrially significant technologies," without specifying those products. He added that the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices."

Trump also said the U.S. would impose more tariffs on Chinese goods if China retaliates with duties of its own on American products. This left many traders to wonder if we are officially in a "Trade War" with China now.

China Tariffs

Key Levels To Watch Next Week:

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NASDAQ Hits Record High On Judges Ruling

Hello traders everywhere. The likes of Netflix Inc. (NFLX) and Time Warner Inc. (TWX) have propelled the NASDAQ (COMP) to record highs today hitting $7,748.96 in morning trading. Move higher comes after a federal judge approved the blockbuster merger between AT&T and Time Warner on Tuesday, blocking the government's effort to stop the $85.4 billion deal. This decision could unleash a wave of corporate takeovers.

The judge, Richard J. Leon of United States District Court in Washington, said the Justice Department had not proved that the telecom company's acquisition of Time Warner would lead to fewer choices for consumers and higher prices for television and internet services.

The merger would create a media and telecommunications powerhouse, reshaping the landscape of those industries. The combined company would have a library that includes HBO's hit "Game of Thrones" and channels like CNN, along with vast distribution reach through wireless and satellite television services across the country.

NASDAQ Hits Record High

On the other side, the S&P 500 and DOW are relatively unchanged on the day awaiting the announcement of the Federal Reserves interest rate hike decision at 2 pm EDT today. It's expected that Fed Chair Jerome Powell and his colleagues will announce a quarter-point increase in interest rates as the central bank seeks to normalize monetary policy with the economy showing signs of health. Continue reading "NASDAQ Hits Record High On Judges Ruling"

Bitcoin Delivers Sunday Surprise

Hello traders everywhere. The CME Bitcoin real-time index dropped over 10% on Sunday giving many cryptocurrency traders a Sunday surprise. The index traded as low as $6,643.58 before finally closing the day at $6,781.18. It's the first time since early April that Bitcoin has traded below the $7,000 level. However, it shouldn't come as a surprise after it's been trapped in a tight trading range between $7,000 and $7,800 since about mid-May.

Media reports will have you believe that the price drop is due to a hack on the South Korean exchange Coinrail, which was revealed Sunday, and renewed concerns regarding security at cryptocurrency exchanges. However, a significant move was expected anyway, as an extended period of consolidation or low volatility is often followed by a sharp move on either side and prices started falling Saturday, so the theft of ERC-20 tokens at a minor exchange seems an unlikely cause.

Bitcoin Delivers Sunday Surprise

Events To Keep In Mind This Week

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