Gold & Silver: Get Ready For A Final Shot

Posted on by Aibek Burabayev

Chart 1. Gold 4-Hour

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Chart courtesy of tradingview.com

Gold has already booked more than $20 from the low established on the 28th of September at the $1181. Now, there is no doubt that the pullback I mentioned in the middle of September has been in progress.

After hitting the $1209 area, gold halted its move to the upside and started a consolidation. I marked that move as the AB segment (up blue arrow). I always mention the tricky nature of corrective structures as it may vary on the fly. The shape of consolidation could be as a counter-trend zigzag, could fit into a rectangle or form a triangle. The latter has been shaped in our chart above as the combination of lower peaks and higher troughs. I highlighted it with the converging trendlines (orange). Continue reading "Gold & Silver: Get Ready For A Final Shot" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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 December contract settled last Friday in New York at 1,196 an ounce while currently trading at 1,206 up about $10 for the trading week but still stuck in a tight 6-week consolidation pattern and looking to break out in my opinion. Gold prices are trading right at their 20-day but still below their 100-day moving average which stands at the 1,215 level as the volatility has come to a crawl so keep an eye on this market as a breakout is looming. If prices break the 6-week high which was created on August 28th at 1,215, I will be recommending a bullish position while at the current time I am also recommending a bullish position in copper and silver as it looks to me that the precious metals are starting to come to life. Gold prices have been in a bearish trend since their high on April 11th at 1,388 is a stronger U.S. dollar and higher interest rates continue to put pressure on this market, however that may have come to an end as we have now gone sideways for quite some time as a spike bottom may have occurred around the 1,167 level on August 16th. My consolidation rule states the longer the consolidation, the stronger the move. I like to see an 11-13 week consolidation as I am certainly not recommending a position at this time as there is no trend so be patient as a powerful trend could be coming in the weeks ahead.
TREND: MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Continue reading "Weekly Futures Recap With Mike Seery" →

U.S. Crude Production Sets Records In July

Posted on by Robert Boslego

The Energy Information Administration reported that July crude oil production averaged 10.964 million barrels per day (mmbd), up 269,000 b/d from June. The surge was partly on the back of a rebound of 189,000 b/d in the Gulf of Mexico to a new record high of 1.849 mmbd. In addition, new record-high output was reached in four states: Texas (4.469), North Dakota (1.260), New Mexico (669,000) and Oklahoma (543,000).

U.S. Crude Production Sets Records
Continue reading "U.S. Crude Production Sets Records In July" →

Back To Back Losses To End Week

Posted on by The INO.com Team

Hello traders everywhere. What looked to be another record-setting week mid-week has turned ugly the last couple of days with the DOW posting back to back 200 point losses to end the week and finishing down over -.3% on the week. The S&P 500 and NASDAQ will both have two daily losses to end the week with the S&P losing over -1% and the NASDAQ losing over -3.5%, triggering a new red weekly Trade Triangle, as the tech sector is experiencing yet another sell-off.

Back To Back Losses

The recent weakness can be attributed to the mixed jobs report that shows a tightening job market that is pushing interest rates higher. The U.S. economy added 134,000 in September, well below the expected gain of 185,000. However, the U.S. unemployment rate fell to its lowest level since 1969. Job gains for August also received a sharp upward revision to an addition of 270,000 jobs from 201,000. Wages, meanwhile, grew by 2.8% last month on a year-over-year basis to match expectations.

The 10-year note yield rose to 3.227% and hit a fresh 2011 high while the two-year note yield advanced to 2.897%. Yields have been on the rise this week amid strong economic data.

Key Levels To Watch Next Week:

Continue reading "Back To Back Losses To End Week" →

Marijuana ETF On Wild Ride in September, Will It Continue?

Posted on by Matt Thalman

As we close in on October 17th, the official day that Canada legalizes marijuana, potential investment opportunities in the industry continue to attract new money, and share prices have ballooned. But the real question is whether or not the boat has left you at the dock or if there is still time to get in on this party.

Anyone that follows the stock market has undoubtedly heard of the top few marijuana stocks by now. Companies like Tilray (TLRY), Canopy Growth (CGC), or Aurora Cannabis (ACBFF), just to name a few have been highly reported on over the last few weeks, increasing interest and moving their share prices. These companies have seen outside investments from alcohol companies, and interest in their business’s increase as both investors and other industries try to position themselves for what some believe will be the ‘next’ great investment frontier.

Tilray, which just went public in July, has seen its share price go from below $30 to as high as $250 in mid-September. That jump, in particular, sent the price of the only U.S. listed marijuana ETF, ETFMG Alternative Harvest ETF (MJ) to its highest level ever on September 20th at $43.01. After closing August at just $33.48, on September 20th MJ was up 28% for the month but ended up closing the month down just slightly from that level at $40.05, which by the way was still a 19.6% gain in September.

It should also be noted that MJ was a top ETF performer in August, rising 27.7%. In August MJ got a boost from the alcohol companies, Constellation Brands (STZ) announcing it was increasing its stock in Canopy. Molson Coors Brewing (TAP) reporting it had entered into a partnership with Hydropothecary Corp to create a cannabis-infused beverage, and Diageo (DEO) apparently being in talks with a few different Canadian based marijuana companies about either partnering or buying stakes in their businesses.

MJ’s performance in August continued in September, but are we going to see the same trend in October or even further out in 2019? Continue reading "Marijuana ETF On Wild Ride in September, Will It Continue?" →