Chart of The Week - Crude Oil

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

As the week starts, our attention turns to the June Crude Oil futures (NYMEX:CL.M14.E). After gaining nearly $7/barrel in less than a month, the market has recently consolidated around $103.50/barrel as it begins to decide which direction it will take. It appears that some of the recent slowing of the market is due to profit-taking, as the recent sharp up-trend may have gained too much too soon. There are a number of fundamental factors at play in the market, many of which seem to work in contrast with each other: support from Russia-Ukraine uncertainty, resistance from ample supply concerns, and improved demand prospects following solid US Economic data last week. With a number of different fundamental factors in play – and uncertainty over which fundamental factor the market will focus on moving forward – I will focus on the technical aspects of the market for a potential trading opportunity.

Thursday’s range last week was consolidated within the previous day’s range and a move above or below that range should give us good direction to go off of. Continue reading "Chart of The Week - Crude Oil" →

When The Major Equity Market Bubble Crashes, Michael Berry Will Take Refuge in These Gold Stocks

Posted on by admin

The Gold Report: Mike, you've been watching the stock market and, by extension, the precious metals markets very closely for signs of a larger equity market blow-off that could send gold higher. What makes you think the Dow Jones Industrial Average and the NASDAQ are in a bubble? What are the signs that a crash might be imminent?

Michael Berry: I have been watching bubbles since 1987. In September of that year I correctly predicted the 25% crash of October 19. We have been blowing through mini and maxi bubbles for 30 years; this one is nothing new.

The solution to our macroeconomic issues has been to inflate new bubbles, to inflate asset values to soften the blow from the last bubble, all the while creating the conditions for the next one. That is how we ended up with the current equity market bubble. It is driven solely by the Federal Reserve's liquidity. Always remember that liquidity begets liquidity. I also see a debt market that I consider to be a bubble. These markets are just not sustainable. I can't say when, but we have an equity market decline coming, maybe a severe decline.

TGR: The housing bubble and the tech bubble were, by definition, confined to certain niches initially and then the impact reverberated to other sectors. Are you predicting a market-wide crash where everything falls or will it be confined to certain sectors? Continue reading "When The Major Equity Market Bubble Crashes, Michael Berry Will Take Refuge in These Gold Stocks" →

Drugstore Wars: Walgreen Vs. CVS

Posted on by admin

I hope I'm not dating myself too much, but I remember when the neighborhood chain drugstore was almost a one-stop shop for human needs.

For example, you dropped off your film to get developed. You could get the ointment for that embarrassing itch. You could even get a BLT and some fries. (Not necessarily in that order.)

The BLTs and fries are long gone, but the chain drugstore on the neighborhood corner has continued to evolve and embed itself into our daily lives. And it will continue to do so in an even bigger way going forward.

By far, the two biggest players in the drugstore space are Walgreen Co. (NYSE: WAG) and CVS Caremark (NYSE: CVS). If two-thirds of the Earth is covered by water, the remaining third is covered by these two companies. But which stock makes the most sense for your portfolio? Continue reading "Drugstore Wars: Walgreen Vs. CVS" →

Big Pictures: Stocks, Gold and the Miners

Posted on by admin

Ukraine war hype, China demand drop, GOFO mysteries… these are the short term noise inputs on the gold sector.

US Treasury bond yield spreads, gold vs. commodities (i.e. the 'real' price of gold), gold vs. the stock market… these are some of the fundamental considerations that actually matter and they have taken a hit since January.

It is easy to say 'I am bullish in the big picture' (measured in years) but it is not so easy to actively manage in the smaller pictures (measured in days, weeks and months) with all of the above noise inputs and more bombarding the poor individual player.

We use shorter term charts to manage the shorter time frames.  Daily charts have most recently indicated a bearish set up as bear flags formed across the precious metals complex (with the exception of silver, which never got going to begin with) last week.  Weekly charts continue to indicate that an extended and oh so grinding bottom may be forming, but that includes the potential for ups and downs, also known as volatility. Continue reading "Big Pictures: Stocks, Gold and the Miners" →

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 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 June contract are trading below their 20 day but above their 100 day moving average telling you that the trend currently is mixed as prices are still trading near two-year lows and if this commodity could talk it would bark in my opinion as it is becoming a tremendous dog in recent months trading lower by $40 in Tuesday’s trade settling last Friday at 1,319 and going out this Thursday afternoon at 1,295 finishing down about $25 for the trading week. If prices break 1,277 I would be recommending a short position putting your stop above the 10 day high with the possibility of prices heading towards major support at 1,240 and then maybe the possibility of lower prices as it seems that nothing can make gold prices go up not even the fact of the Ukrainian crisis & the recent stock market choppiness as demand for gold at this current time is very weak with very little interest as well. Markets go up due to the fact that money flows come into that commodity and all the money flow is going into stocks at the current time as complacency has set in as nobody seems to care about gold or see any reason to own it at this time, however in my opinion I do believe worldwide problems will come back and I do think losses in gold are limited so I would look for a better trending market & sit on the sidelines unless 1,277 is broken on a closing basis.
TREND: LOWER
CHART STRUCTURE: EXCELLENT

Continue reading "Weekly Futures Recap With Mike Seery" →