Weekly Futures Recap With Mike Seery

Posted on by admin

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been a 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.

Crude Oil Futures

Crude oil futures in the April contract settled last Friday in New York at 35.92 while currently trading at 38.90 a barrel up around $3 for the trading week continuing its bullish momentum as prices have now hit a 9 week high. Crude is trading above its 20 day but right at its 100 day moving average as the trend is still relatively mixed in my opinion as the commodity markets in general have all bottomed out as volatility certainly has come back into the currency market pushing the commodity markets like a yo-yo in recent weeks. Continue reading "Weekly Futures Recap With Mike Seery" →

Invest in Innovation

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's been a huge global push for technological advancement for decades and it doesn't show any sign of slowing up. Beginning with Alan Turing, the creator of what became the modern computer to Bill Gates, the man who made the personal computer a ubiquitous household item, comes a new name: Elon Musk.

This innovator started off as co-founder of PayPal, an online payments system that's come to be accepted at virtually every online retailer. From that success, Musk has come to be associated with a number of technologically innovative companies like Tesla, SolarCity, and SpaceX.

Despite launching an electric car company -- something that had never had widespread success with other car manufacturers -- in an already saturated automotive market, Tesla has become the poster company for breakthrough technologies.

Electric car sales are exploding worldwide. From 2014 to 2015, the total number of electric cars on the road doubled and has now topped 1.3 million. Bloomberg New Energy Finance estimates that sales of electric vehicles will soar to 41 million by 2040 and make up around 35% of all light vehicle sales. While the US is currently in the lead with over 400,000 electric vehicles on the road according to the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW), the rest of the world is blazing forward with more and more investment into sustainable technologies.

The Name Brand For Innovation

Tesla Motors (NASDAQ:TSLA) is a $26 billion electric auto manufacturer with vehicles on the road in over 30 countries. The company has a variety of vehicles available including a new crossover that has just been put into production. The company is a bit misleading however, although it does manufacture electric cars, the companies real value is its breakthrough lithium-ion battery technology.

Building on the company's battery technology, Tesla is constructing a gigafactory in Nevada that by 2020, will produce more lithium ion cells than the entire world's output in 2013. Battery life prior to Tesla was limiting for electric vehicles preventing them from gaining a foothold in the automotive industry, but new technologies have now expanded that range to more than 200 miles and is expected to increase in future years.

Despite Musk's penchant for innovation, Tesla's stock is one of the more heavily shorted with a short float of more than 30%. This makes the stock unusually volatile with a history of sharp ups and downs. Just take a look at its chart.

Notice the sudden dip and subsequent rise in February. While the 20-day moving average has fallen below the 50-day, it's beginning to mount a comeback – a possible bullish sign. Along with the positive MACD, this stock appears to have room to run.

Tesla isn't cash flow positive right now so it's difficult to place a hard value on it, but the company is expected to have positive earnings in the next 12 months. Over the past four quarters, Tesla has beaten estimates twice, but missed them twice as well.

As a volatile stock with volatile earnings, Tesla is a risky investment but comes with a high potential payoff. Based on next year's earnings and analyst price projections, this stock could be fairly valued at around $232 – a 15% gain.

Check back to see my next post!

Best,
Daniel Cross
INO.com Contributor - Equities

Disclosure: This contributor does not own any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

Getting Ready For The Next Big Move

Posted on by The INO.com Team

Seven years ago the DOW was trading around 6000, today this index is over 17,000. So what is the next big move in this index? I suspect the next big move will be on the downside.

Today, China announced that exports hit a 7-year low which indicates to this observer that economies around the world are slowing down.

Technically in many of the major stocks we still have red monthly Trade Triangles indicating that the trend is still down longer-term. The same holds true for the major indices where we are still seeing monthly red Trade Triangles.

At the end of last week, I indicated that I expected this week to be choppy and range bound, as the major indices have all reached major Fibonacci resistance points. I expect the indices to turn back down after a week or two. I still hold to that belief and want to watch these markets very carefully looking for an entry point to go short. Continue reading "Getting Ready For The Next Big Move" →

Silver Update: This Cup Should Refresh Bulls

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Code Orange

In my previous post I warned bears to be alert to the changing trend as strengthening signals started to appear for Silver. This month I think the proper code for the current bear market is orange. The orange level requires sellers to be prepared for the anticipated worsening of conditions.

Chart 1. Silver Monthly: Second Attempt to Break Up

Monthly Chart of Silver
Chart courtesy of tradingview.com

I added the Fibonacci retracement level on the chart to show you how deep the silver price drop is. The 78.6% is usually the last level of correction, where most buyers have already jumped out of their long positions. The metal stopped falling right above it. For comparison, gold retraced only 50% of the rise and it has some room for further weakness. Continue reading "Silver Update: This Cup Should Refresh Bulls" →

Time To Buy Oil

Posted on by The INO.com Team

It has taken some time, but it looks like Saudi Arabia has finally won the oil wars. The long and steady decline in crude oil, which has taken over five years, has taken its toll on many small oil producers who have effectively been driven out of business. Saudi Arabia's cost of producing oil is probably the lowest in the world and even at $30 a barrel, they are still making a ton of money.

Crude Oil

An amazing side effect was the fact that the stock market was driven higher as oil prices were driven lower. The perceived theory behind this is that the consumer could fill up their car at a lower cost and therefore would have more disposable income. Now that oil prices are moving higher, will the reverse happened and push equity prices lower? I believe that is exactly the direction we are headed in right now, oil prices higher, equity prices lower.

Our Trade Triangle technology may have already picked that up with a monthly red Trade Triangle in place for all of the major indices, indicating longer-term lower prices. In the case of crude oil, we use the weekly Trade Triangle which is now green indicating prices are headed higher. This is the first green weekly Trade Triangle for crude oil we have seen in over five months. Continue reading "Time To Buy Oil" →