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.

Silver Futures

Silver futures in the December contract have traded lower for the 4th consecutive trading session at 14.55 an ounce continuing its bearish momentum as the U.S dollar is up 45 points trading off of a four week low. If you are short a futures contract place the stop loss above the 10-day high which was hit in Tuesday's trade at the 15.07 level as an exit strategy as it looks to me that we will retest the August 16th low of 14.40 soon as prices are still trading under their 20 and 100-day moving average as clearly the trend remains negative. Silver prices are stuck in a three-week trading range consolidating the recent sell-off in price. I still see no reason to own any of the precious metals as the U.S. stock market is hitting another all-time high this week. I'm also recommending a bullish S&P 500 trade which continues to roll along on a daily basis as money flows continue into U.S equities and out of the precious metals so stay short & place the proper stop loss. If you take a look at the daily chart, the downtrend line remains intact. However, if the 15.07 level is broken that will also be breached as then it would be time to sit on the sidelines while waiting for another trend to develop.
TREND: LOWER
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE
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Disney Continues Path via Future Growth Initiatives

Posted on by Noah Kiedrowski

Disney’s Growth and Future Initiatives

Disney delivered solid Q3 FY2018 quarterly results as the company continues to be focused on future initiatives such as acquiring Twenty-First Century Fox assets and a major push into streaming with a majority stake in Hulu (60% ownership), ESPN Plus launch earlier this year and direct to consumer Disney branded streaming service coming in 2019. Disney’s Q3 revenue and EPS grew by 7.3% and 18%, respectively year-over-year. Disney continues to deliver at the box office, and theme parks and its stock has finally broken out above the $110 level and appears to be consolidating above this level. Disney’s brands are ubiquitous and providing long-lasting, durable revenue streams that transcend theme parks, toys, merchandise, movie franchises, streaming initiatives, Fox properties and international reach. Disney is closing the gap in streaming as Hulu grows rapidly and in the backdrop, ESPN+ and direct to consumer Disney branded streaming service matures and comes to fruition. Disney currently trades at a P/E of 14.1 while the average stock in the S&P 500 trades at 24.9 representing a 40% discount to the average stock. Disney has been growing its dividend over the years and currently yields 1.5% to bolster Disney’s investment thesis further. Disney offers a compelling long-term investment opportunity considering the growth, Fox acquisition, pipeline, Media Networks remediation plan, diversity of its portfolio, tax reform, share repurchase program (on suspension) and dividend growth. Continue reading "Disney Continues Path via Future Growth Initiatives" →

Stocks End August Mixed on Trade Concerns

Posted on by The INO.com Team

Hello traders everywhere. While August has been a strong month for stocks overall the stocks market is ending the month on a weak note with the exception of the NASDAQ, which continues to make gains on the back of Apple and Amazon which have kept Nasdaq slightly higher today.

Despite Friday's declines, Wall Street is set to conclude a bullish month. The DOW and the S&P 500 remain on track for their best August since 2014; the NASDAQ was poised to clinch its best August since 2000. The indexes were up 2%, 3% and 5.5% for the month as we head into the closing bell.

Trade Concerns

Early this week was a report that President Donald Trump was ready to impose tariffs on $200 billion more of Chinese goods as soon as a public comment period on the plan ends next week. The United States is also working to settle differences on a pact to modernize the North American Free Trade Agreement (NAFTA) by a Friday deadline. Continue reading "Stocks End August Mixed on Trade Concerns" →

Amazon, Apple and NASDAQ Hit Record Highs

Posted on by The INO.com Team

Hello traders everywhere. As we near the end of the summer trading season the NASDAQ is hitting all-time highs each day being propelled by gains in tech which have been led by Amazon and Apple today. The NASDAQ traded over the $8,100 level in early trading and is currently posting about and .80% gain on the day. Will it close out the day at a new record high?

Both companies are hitting record highs as Amazon.com Inc. (AMZN) shares rose 1.4% after Morgan Stanley raised their price target on the stock, predicting a $1.2 trillion valuation for the company. Analyst Brian Nowak said Amazon's advertising, subscription and cloud businesses "will drive higher profitability and continued upward estimate revisions."

Amazon Apple

Meanwhile, Apple Inc. (AAPL) is continuing it's month-long march higher which now stands at over +16% on the month. This mover higher is largely due to Apple's services segment which reported sales that reached a record high of $9.5 billion in its recent quarter, up 31% from a year earlier. The services segment currently accounts for 13% of Apple's total revenue. But let's not forget that the company is gearing up for its biggest iPhone launch in four years with expectations to ship 70 million to 75 million units of its 12th-generation iPhone models by the end of the year. That would be Apple's biggest launch since the iPhone 6 series in late 2014.

Key Levels To Watch This Week:

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Don't Buy The Low Inflation Story

Posted on by George Yacik

Federal Reserve Chair Jerome Powell sent investors home happy for the weekend last Friday when he outlined a fairly balanced plan of interest rate increases designed to fight inflation while avoiding throwing the economy off track. Nevertheless, some economists at the Fed itself appear to believe that the central bank may not be taking the threat of inflation seriously enough.

In his prepared remarks for his speech at the Kansas City Fed’s annual policy symposium in Jackson Hole, Wyoming, Friday, Powell indicated that he’s not overly worried about rising inflation, or at least not enough to be more aggressive about raising rates to avoid piercing a hole in the economic balloon just as it’s starting to expand.

“While inflation has recently moved up near 2%, we have seen no clear sign of an acceleration above 2%, and there does not seem to be an elevated risk of overheating,” the Fed chair said. Moreover, he said the Fed has to balance “moving too fast and needlessly shortening the expansion, versus moving too slowly and risking a destabilizing overheating. I see the current path of gradually raising interest rates as the approach to taking seriously both of these risks.”

That was enough to push the S&P 500 to its first record close since January 26 and the yield on the benchmark 10-year Treasury note to 2.81%, which is down about 20 basis points from its recent peak of 3.00% at the beginning of this month. Continue reading "Don't Buy The Low Inflation Story" →