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.
Silver futures in the December contract settled last Friday in New York at 14.17 an ounce while currently trading at 14.23 up about 6 cents trading in a two week consolidation and if you are short the stop loss in Monday's trade will be 14.59, however in Tuesday's trade that will drop tremendously to 14.39 which is just an eyelash away. For the bearish momentum to continue, we have to break through the September 11th low of 13.96 as gold prices hit a two week high in yesterdays trade as I have now become neutral that commodity, but silver remains negative as the downtrend line remains intact as the volatility has come to a crawl. Historically speaking silver prices look cheap in my opinion as I do think a bullish trend eventually will develop as prices have dropped about 20% from June as we are right near a nine-year low as prices have plummeted from $50 an ounce in 2011 as that's how far this bearish trend has dropped. The commodity markets, in general, remain weak, but I do think a bottoming out process is coming about as the U.S. economy is excellent as global economies are also improving as you would have to think 2019 commodity prices will start to rally. However, if you are short, place the proper stop loss and if stopped out then look at other the markets that are beginning to trend.
CHART STRUCTURE: EXCELLENT
Continue reading "Weekly Futures Recap With Mike Seery"
I’ve written several articles highlighting HealthEquity Inc. (HQY) since the sub $40 range as a great play on the secular growth in the Health Savings Account (HSA) space that’s mostly independent of legislative actions, the drug pricing debate or rising insurance costs. HealthEquity is not an insurance company thus does not possess any liability for coverage in any capacity nor does the company play any role in the pharmaceutical supply chain. HealthEquity is at the center of a healthcare paradigm shift where consumers are taking control of their healthcare dollars via leveraging HSAs. HealthEquity manages funds allocated for medical, dental and vision expenses that are deducted on a pre-tax basis and deposited into a dedicated HSA account. The company blew out the numbers when it reported its Q2 FY19 results with the stock following suit breaking out above $95 per share to an all-time high of $98 and looking to break through $100.
HealthEquity manages $7.0 billion in assets across 3.6 million accounts against a potential market maturity of $1 trillion in assets across 50-60 million accounts. The durability of this growth has a long runway due to the secular growth in the HSA market. The company is sitting on largely untapped revenue sources where the vast majority of account holders have yet to invest any HSA money in investment offerings. Expanding margins for greater profitability is also unfolding as the older the account, the greater the gross margins observed. HealthEquity is currently sitting on a healthy balance sheet with ~$303 million in cash and cash equivalents with zero debt. The company is posting accelerating revenue, cash flow, margin expansion and income growth with a strong balance sheet. I feel that HealthEquity will continue to post strong growth as it services the double-digit HSA growth market and manages more assets, accounts, and investments within these accounts. HealthEquity may be a great long-term investment in the healthcare space that’s independent of the health insurances, pharmaceutical supply chain companies, drug makers or pharmacies. The current valuation is rich in an already frothy market thus caution at these levels is wise.
HealthEquity’s FY19 Q1 Earnings and Analyst Sentiment
Q1 FY19 earnings delivered another double-digit growth story across the board with revenue coming in at $71.1 million, an increase of 25% year-over-year. Net income came in at $22.5 million, an increase of 33% year-over-year. Total HSA members came in at 3.6 million, an increase of 23% compared to Q2 FY18. Total custodial assets were $7.0 billion, an increase of 31% compared to year-over-year. Continue reading "HealthEquity Inc. - Roaring Through $100"
Hello traders everywhere. Overall the stock market was having a good week and was looking to close near record highs, but alas the potential for the implementation of tariffs totaling over $200 billion on Chinese goods has once again spooked the markets. News surfaced to today that President Trump has instructed his aides to go ahead with his China tariff plan. This move comes despite U.S. Treasury Secretary Steven Mnuchin's attempt to restart talks with Beijing to resolve the trade war that we are in.
The S&P 500, DOW and NASDAQ will all post weekly gains of around +1%, +.70%, and +1% respectively after bouncing back from weekly losses last week.
Even though the dollar is higher today, it's trading lower for the week losing -.44% on the week. Crude oil has backed off the weekly high of $71.26 to trade in the $68 range after experiencing a rash of hurricane buying mid-week as hurricane Florence was barreling down on the Carolina's but quickly sold off those highs. Gold is relatively unchanged for the week and is currently trading around the $1200 level.
Bitcoin is putting up a good fight and staying above the $6000 level and currently trading at $6475 posting a weekly gain of +4.85% gaining back a little of -13% loss last week.
Key Levels To Watch Next Week:
Continue reading "Trump Tariffs Spook Markets"
Canopy Growth Corp (WEED, CGC) has been one of the best performing cannabis stocks in the world.
Shares of the world’s largest cannabis company are up 560% in the last twelve months.
One of the reasons Canopy has been so successful is because of CEO Bruce Linton.
Linton has developed a reputation as one of the best CEOs in the young cannabis industry.
Not only does Linton have a bold vision for Canopy and the entire cannabis industry, he has a proven history of execution.
If you missed out on Canopy’s big run higher don’t worry – I see a new way to invest in Bruce Linton and his success with Canopy. Continue reading "Can Canopy Rivers Copy Canopy's Success?"
Will last Friday’s August jobs report showing that wages rose nearly 3% compared to a year ago finally convince the Federal Reserve that inflation really is starting to pick up steam? If not, what exactly will it take?
That report was certainly good news for workers, who have waited a long time – since 2009, apparently – to see their wages rise by so much. But it also provides convincing evidence that 2% inflation – which the Fed has been trying to stoke for the past 10 years – has finally arrived. But will the Fed actually believe it and do something before it “overheats,” to use its word?
A hike in the federal funds rate to 2.25% at the Fed’s September 25-26 monetary policy seems like it’s already baked in the cake. But it’s still not a given that another one will happen at the December meeting. According to CME’s Market Watch tool, the odds of a rate hike at the yearend confab are only 72%, compared to more than 98% for this month’s meeting. (While the Fed does meet in early November – just a day after the “most important election in our nation’s history,” if you believe some of the political pundits – a rate change then is very unlikely. The Fed has indicated that it will only adjust rates at a meeting that ends with a press conference by the Fed chair. That pretty much disqualifies November).
After the jobs report was released, the yield on the two-year Treasury note hit 2.70%, its highest level in more than 10 years. The benchmark 10-year note closed last week at 2.94%, its highest point in over a month. That those rates didn’t go even higher seems to indicate that the market isn’t yet sold on two more rate increases this year.
At least one member of the Fed is. Continue reading "What's The Right 'Neutral' Interest Rate?"