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 prices had a volatile trading week basically finishing unchanged to settle around 1,298 in the June contract after having a tremendous reversal selling off down to 1,272 when the monthly unemployment number was released adding 280,000 jobs which is bullish the economy and bearish gold but then turned on a dime with the Ukrainian problems escalating sending gold finishing up $14 this Friday right near session highs as prices have been consolidating in recent weeks. I’ve been sitting on the sidelines in the gold market for quite some time as this market remains choppy and it might be bottoming at the current price levels as gold rallied $200 to start the year but now has given back over $100 so were at about the 50% retracement so if your bullish gold I would buy a futures contract at today’s price while placing my stop at the 10 day low which is also the 10 week low of 1,268 an ounce risking around $3,000 per contract. I’ve lived through many of these political escalations including one last August with Syria and they always seem to fizzle away so we will see if today’s rally will do the same but sit on the sidelines and see what develops. The one thing gold does have going for it is trading above its 20 and 100 day moving average which is telling you that the trend might be turning higher as prices could be bottoming out.
TREND: MIXED
CHART STRUCTURE: EXCELLENT
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