Futures Market Continues To Push Higher

Posted on by Mike Seery

Silver Futures

Silver futures in the March contract settled last Friday in New York at 24.09 an ounce while currently trading at 26.10 up over $2 for the trading week as prices have now hit a 3 month high and will look to test the $30 level in the coming weeks ahead.

If you have been following my previous blogs, you understand that I have been keeping a close eye on silver as I think sharply higher prices are ahead as I have now been recommending a bullish position from around the 26.05 level. If you took that trade, continue to place the stop loss under the 10-day low standing around the 24.30 level as an exit strategy as the volatility will increase tremendously in the coming weeks ahead.

The entire precious metals sector looks to move higher as the U.S. dollar has now hit a fresh two-year low. That trend is getting stronger to the downside weekly because the United States government continues to print money at an unprecedented rate. That is an extremely bullish fundamental factor towards silver and the entire commodity market as a whole.

I believe the $30 level will be breached in the coming weeks ahead. I still believe the $50 level, which is the all-time high, will be tested as extremely low-interest rates coupled with the fact that the U.S government wants asset classes to rise, which means you trade with the path of least resistance and that currently is to the upside as I see no reason to be short.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Natural Gas Futures

Natural gas futures in the January contract settled last Friday in New York at 2.59 while currently trading at 2.70, up slightly for the trading week. It looks to me that a bottom finally has been formed as we enter the highly volatile winter months. Continue reading "Futures Market Continues To Push Higher" →

Irrational Exuberance?

Posted on by The INO.com Team

The broader indices have been in a raging bull market since the COVID-19 induced lows in March of 2020. The rally has been largely uninterrupted, with minor blimps in September and October before reaching all-time highs by early December. The initial rally was narrowly focused on technology and the stay-at-home economy stocks. With the improving vaccine prospects, November saw a sea change with broad market participation with value stocks breaking out with huge moves to the upside. To boot, massive stimulus coming out of Washington is being priced into the markets. All three major indices (S&P 500, Nasdaq, and Dow Jones) are at all-time highs. Are stocks overextended underpinned by irrational exuberance considering the damaging economic consequences that COVID-19 inflicted on the worldwide economy? Are markets getting ahead of themselves as investors bet on a return to normal for the global economy? Stretched valuations, options put/call ratios, broad participation, and P/E ratios may be potential warning signs of near-term pressures.

irrational exuberance

Fundamentals – Lofty P/E Ratios

Price-to-Earnings ratios are largely discordant with the economic backdrop and at historically lofty levels. Outside of the tech bubble in 1999/2000, the current P/E ratio of the S&P 500 composite is the highest on record, exceeding that of the Roaring Twenties (Figure 1). Continue reading "Irrational Exuberance?" →

Winning Week For Stocks And Bitcoin

Posted on by The INO.com Team

Despite Friday's overall weakness, the three major indexes and Bitcoin were able to post weekly gains. The DOW gained +0.4% for the week while the S&P 500 advanced +1.3% for its fourth positive week out of the last five. The tech-heavy NASDAQ outperformed the other two indexes with a gain of +3.1% for the week.

On a daily level, the DOW fell 124.32 points or -0.4%, to 30,179.05. The S&P 500 dipped -0.4% or 13.07 points, to 3,709.41, and the NASDAQ lost -0.1% or 9.11 points, to 12,755.64. All three indexes touched new intra-day highs earlier in trading after closing at records in the previous session. Those records are 30,343.59, 3,726.70 and 12,809.60 respectively.

However, Bitcoin was the big winner for the week, gaining roughly +22% and setting an all-time high of 23,777 on the back of rising volume. Where did that increase in volume come from? The bitcoin "whales," of course. Often times, these large rallies are fueled by large investors with an ability to influence market trends. Sound familiar? Continue reading "Winning Week For Stocks And Bitcoin" →

Chart Analysis: A Bigger Picture View Of HUI

Posted on by Gary Tanashian

In NFTRH we did a lot of work managing the oncoming correction, the valid reasons behind it (these reasons are beyond the scope of this post but don’t listen to the perma-bulls, they were more than valid and readable in advance), the now nearly 5-month-old correction (technically still intact) and more recently the improved risk vs. reward after HUI hit our long-standing ‘best’ target of 280 +/-.

There is another downside target at 260 +/- but it may just be time for the drudgery (AKA consolidation/correction to bleed out the excesses) to end. The answer to confirm that will be left to ongoing work we do on shorter time frames, including daily charts in the weekly report and in-week updates. But for this post, I want to take a perspective look at HUI’s weekly chart.

This is an old chart we used to manage the previous bull market top and long road down to the depths of the bear, in lockdown by the 55 week EMA. With the excitement happening during FOMC week, as the Fed tells us all what we already knew (it’s funny munny for as far as the eye can see, or at least as long as the Continuum permits) it pays to have some bigger picture perspective while positioning.

I think it is a notable, if minor, positive that Huey has so far held the EMA 55 for the first time on the way up as it had held below it during the worst of the bear market on the way down. It never hurts to see things rhyme when using TA. Of more importance, HUI has held the first layer of support on the predictable pullback from all too clear resistance at 375 (a target we had loaded since mid-2019).

The 260 +/- target also includes strong weekly chart support and until the downward consolidation from Continue reading "Chart Analysis: A Bigger Picture View Of HUI" →

In Lieu of Our Holiday Party

Posted on by The INO.com Team

Updated: December 29, 2020

Congrats to Our Selected Charity - 180 Degrees Inc. (Saint Paul, MN)

This organization was suggested by our visitor, Matthew.

180 Degrees' mission is to support individuals and families to overcome barriers, transform lives, and contribute to healthy, multicultural communities. We have proudly donated $500 to 180 Degrees in Matthew's honor.

Learn More About 180 Degrees

2020 was a challenging year for everyone.

It's probably the most overused sentence of the year, but it's true. It was a year of distance and division, uncertainty, and isolation.

All things considered, the team at INO.com feels incredibly blessed this year thanks to the wonderful INO.com community and our MarketClub members.

While we had hoped to host our annual holiday party for our team and their families, our staff agreed that people in our community needed our help.

In place of our holiday party, INO.com happily provided meals to food-insecure families through donations to the South County Area Network, MAC House in Moorefield, Wardensville Food Pantry, and the Lost River Ministerial Food Pantry.

President of INO.com, David Maher, personally presented the Mac House with our donation. The coordinator of the Moorefield food efforts said, "Wow, that’s wonderful! Thank you! Thank you! This community is blessed by its giving and caring people. Very generous of you especially in this difficult time."

Truck full of food donation for charity
David Maher Presents Donation to MAC House in Moorefield
Food stacked up to be donated

While we have made donations like this before through our INO Cares initiative, we know that so many more people need help this year. Continue reading "In Lieu of Our Holiday Party" →