Stocks Gain On Thin Trading Volume

Hello traders everywhere. The DOW came close to breaking the 25,000 level in early trading, which would have been the first time since early February that it had traded at or above that level. But it wasn't to be as it soon retreated from those highs to only be trading slightly higher on the day. The biggest contributor to sluggish trading is thin volume, overall trading volumes have been declining for some time with Friday and Monday being two of the lowest-volume days of the year at the NYSE. Have traders started the ole "Sell in May and go away" trend?

Trading Volume

The big news of the afternoon was that the U.S. Supreme Court ruled that states can allow sports betting, which gave a boost to some of the Vegas/gaming stocks. The ruling takes the U.S. a step closer to legal sports betting in numerous states, possibly even nationwide. Currently, the practice is legal only in select places such as Nevada, home to the gambling capital Las Vegas. While Nevada's Gaming Control board reported $4.8 billion in sports bets last year, the black market total is considered to be many times the legal market.

Mark Cuban told CNBC on "Squawk Alley."

"I think everyone who owns a top four professional sports team just basically saw the value of their team double," said Cuban, owner of the NBA's Dallas Mavericks.

Key Events To Watch This Week:

Continue reading "Stocks Gain On Thin Trading Volume"

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 June contract settled last Friday in New York at 1,314 an ounce while currently trading at 1,321 up about $7 for the trading week still experiencing low volatility. At the present time I'm not involved in any of the precious metals but does look to me that gold may have bottomed out around the 1,300 level as that was tested on a half-dozen occasions while rallying every single time as I think the fact that crude oil prices are now at a 4 year high that will start to support the precious metals which still look cheap historically speaking. The U.S. dollar hit a four month high this week as that has been the main culprit pushing prices lower as the Iran deal was revoked and I think that will be a fundamental bullish indicator for gold and the precious metals down the road. The chart structure at the current time is improving as gold prices are at a two week high as we could be involved relatively soon, but at the current time prices are still trading under their 20 and 100-day moving average as the trend is lower to mixed in my opinion. Money flows were coming out of the European countries and into the U.S dollar on fears of the Iranian deal being reversed and that has now happened as it could be "buy the rumor and sell the fact" as the U.S. dollar sold off over the last 2 trading sessions stopping the bleeding in gold prices so be patient & let's see what next week's trade brings.
TREND: MIXED
CHART STRUCTURE: SOLID
VOLATILITY: LOW

Continue reading "Weekly Futures Recap With Mike Seery"

Weekly Gains On Tap For Stocks

Hello traders everywhere. For the first time in a few weeks, the stocks market is looking to post strong weekly gains. Friday morning kicked off with a bang as all three indexes were posting their strongest weeks since early March, but the push higher didn't last as the afternoon hit. However, it looks like they will all post weekly gains over 2% on the week. The S&P 500 and DOW both triggered new green weekly Trade Triangles on the recent market strength, but both still have red monthly Trade Triangles indicating that the overall long-term trend is still weak.

Is the dollars run over? After posting two weeks of over 1% gains, the dollar is posting its first weekly loss in three weeks with a loss of around -.10%. While it's not a huge loss, it does signal that some weakness has entered the arena after weaker than expected US inflation figures for April were reported.

Weekly Gains On Tap For Stocks

Crude oil has backed up last weeks gains with a +1.8% gain this week and continuing to trade above the $71 level. The move higher was exacerbated by geopolitical tensions in the Middle East, which caused concerns over potential supply disruptions down the road. Look for oil prices head higher as bulls exploit geopolitics to power the rally, but the question is, for how long?

Gold has jumped higher on the dollars recent weakness. After three straight weeks or significant losses gold is looking to close out the week higher with a +.50% gain. With geopolitical tensions gaining strength and a weakening dollar look for gold to head higher from here potentially.

Bitcoin continues to be trapped in a tight trading range, and it is posting its first weekly loss after four straight weeks of gains with a loss of -11.9%. As I've been highlighting, the 200-day MA is proving to be a tough level of resistance for Bitcoin to break and with this weeks loss the 50-day MA level of support at 8,262.19 is close to being broken to the downside.

Key Levels To Watch Next Week:

Continue reading "Weekly Gains On Tap For Stocks"

Is This Australian Cannabis Stock A Winner?

Analysis originally distributed on May 2, 2018 By: Michael Vodicka of Cannabis Stock Trades

There are few things that can send a stock soaring like a buyout. Right now I see a wave of buyouts ready to pop off in the Australian cannabis sector- and I want to show you how you can profit. Let’s take a closer look.

Cann Group, Inc.(CNGGF) is an early industry leader in Australia’s high-growth cannabis market.

In 2017, it became the first Australian recipient of research & medicinal cannabis cultivation licenses and the only company to have licenses reissued for year two.

Since acquiring these permits, Cann Group has been investing millions into expanding production and medical research.

For example, Cann Group is building a new state of the art cannabis greenhouse and R&D center with the ability to grow thousands of pounds of cannabis every month.

Funding has been secured for all three stages of the project. This new facility will be the nucleus of Cann Group’s potential expansion across Australia.

Cann Group’s aggressive moves have attracted the attention of the world’s largest cannabis companies – and sent shares soaring. Continue reading "Is This Australian Cannabis Stock A Winner?"

Oil Lifts Energy Stocks After US Exits Iran Deal

Hello traders everywhere. After a weak opening crude oil has provided the catalyst to lead the stock market higher driven by the energy sector. The move higher follows President Donald Trump's decision to pull the U.S. out of the Iran nuclear deal, which he announced yesterday. President Trump said that the U.S. would be walking away from the Iran deal and that sanctions on the Middle Eastern country would be reinstated.

"It is clear to me that we cannot prevent an Iranian nuclear bomb under the decaying and rotten structure of the current agreement," Trump said from the White House Diplomatic Room. "The Iran deal is defective at its core. If we do nothing we know exactly what will happen."

After the announcement, the stock market finished Tuesday trading mixed to unchanged with oil being the big loser dropping -1.37% on the day. The move higher today was delayed, but once it kicked in oil hit a new three and a half year high of $71.36 gaining over +2% on the day.

Oil Lifts Energy Stocks

Key Levels To Watch This Week:

Continue reading "Oil Lifts Energy Stocks After US Exits Iran Deal"