Weekly Futures Recap With Mike Seery

Silver Futures

Silver futures in the September contract is currently trading at 15.22 an ounce after settling last Friday in New York at 15.00 higher by about 22 cents continuing its bullish momentum. Volatility is very low as the rest of the precious metals sector is having tremendous price swings daily as I am shocked that silver hasn't joined the party, but I think it will and if your patient enough I still think higher prices are ahead.

I have been recommending a bullish position from around the 14.93 level, and if you took the trade, I'm going to continue to keep the stop at 14.70 as we need to give this trade some room. Silver prices are trading right at their 20 and 100-day moving average, however for the bullish momentum to continue we have to break the June 21st high of 15.62 as that could happen on any given day, especially if the volatility increases.

I also have bullish recommendations in platinum, palladium, and copper, as demand has come back into this sector as the commodity markets have bottomed out my opinion as most of my recommendations have been to the long side which is the path of least resistance.

TREND: HIGHER - MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW

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Weekly Futures Recap With Mike Seery

S&P 500 Futures

The S&P 500 in the September contract is trading at 2989 lower by 11 points off of the monthly jobs number showing that we added another 224,000 new jobs which was construed as bearish because the Federal Reserve might not lower rates. If you have followed any of my previous blogs, you understand that I've had a bullish bias towards the upside for quite some time, and I still think higher prices are ahead.

The primary catalyst for the surge in equity prices is the fact that the 10-year note is now yielding 2.02% which is remarkable in my opinion especially for the growth rate that we are experiencing here in the United States with the GDP average of over 3%.

Generally speaking, you don't see interest rates this low when economies are surging. However, one of the main reasons for bond yields to continue to head lower is the fact that Europe, which is a collection of socialist countries that have no economic growth. They are the catalyst for lower interest rates as many of them are experiencing negative rates while at the current time, the 10-year note stands at 2.02% and still looks expensive.

I still believe the S&P 500 will trade significantly higher come year end as I see no reason to be bearish the U.S. economy as this is the perfect soup with low-interest rates coupled with the fact that the Federal Reserve will back up the U.S. economy.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

Silver Futures

Silver futures in the September contract settled last Friday in New York at 15.34 an ounce while currently trading at 15.02 down over $0.30 for the trading week as prices hit a 2 week low.

I have been recommending a bullish position from the 14.93 level and if you took that trade continue to place the stop loss under 14.70 on a closing basis only as an exit strategy as I'm hoping that today's sell-off was exaggerated due to the low volume because of the holiday. Continue reading "Weekly Futures Recap With Mike Seery"

Weekly Futures Recap With Mike Seery

Platinum Futures

Platinum futures in the October contract is up $2 at 819 an ounce after settling last Friday in New York at 815 up about $4 for the trading week still experiencing very low volatility as prices are right near a 3 week high. I will be recommending a bullish position if we break the 838 level while placing the stop loss at the contract low which was hit on May 30th at 793 as the risk would be around $2,300 plus slippage and commission.

Gold futures are trading almost $600 higher than platinum as in the old days platinum used to trade higher than gold as this spread is really wide at the current time as I think platinum prices look extremely cheap to the rest of the sector and especially gold.

Platinum prices are now trading above their 20-day, but still below their 100-day moving average as the trend at the current time as mixed as I will wait for the breakout to occur before entering as I will not go short.

The volatility you would have to think will start to expand to the upside in the coming weeks and months ahead as it looks to me that prices over the last month are forming a bottoming out pattern.

TREND: MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW

Gold Futures

Gold futures in the August contract is currently trading at 1,413 an ounce after settling last Friday in New York at 1,400 up about $13 for the trading week and traded as high as 1,442 before profit-taking came about, but I do think higher prices are ahead. It won't surprise me if we consolidate due to the $150 rally that we've witnessed over the last month as tensions with the country of Iran continue to support prices.

Gold is trading far above its 20 and 100-day moving average as the trend is higher as I also have a bullish recommendation in silver and palladium while keeping a close eye on platinum to the upside. Continue reading "Weekly Futures Recap With Mike Seery"

Weekly Futures Recap With Mike Seery

Gold Futures

Gold futures in the August contract is currently trading at 1,400 hitting a 6 month high after settling last Friday in New York at 1,344 an ounce up over $55 for the trading week all on concerns of a conflict brewing with the country of Iran.

The U.S. dollar has hit a 3 month low as well as helping support prices as the fundamental situation for gold has changed very quickly as strong demand continues to push up prices. I am currently sitting on the sidelines in this market, but as I've written about in previous blogs, I still think gold is going higher as I see no reason to be short.

I have bullish recommendations in silver and Palladium as I'm keeping a close eye on platinum to the upside as the 10-year note hit 1.99% this week hitting a multi-year low as that is extremely supportive towards gold prices.

The next major level of resistance is around the 1,450 area as there is still room to run to the upside as you have to remember the all-time high was hit in September of 2011 above the 1,920 level and if you look at the monthly chart, in my opinion, it looks very bullish.

If you have a futures contract place the stop loss under the 10-day low which stands at 1,325 as an exit strategy, however, that will be raised daily starting next week.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGHER

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Weekly Futures Recap With Mike Seery

Copper Futures

Copper futures in the July contract settled last Friday in New York at 2.6275 while currently trading at 2.6435 up about 160 points for the trading week as prices have gone sideways the past two weeks.

I have been recommending a bearish position over the last couple of months from the 2,8240 level and if you took that trade continue to place to stop loss above the 10-day high standing at 2.7020 as an exit strategy as we are just an eyelash away from getting stopped out.

My only other precious metal recommendation is a bullish palladium position which continues to climb as I am also bullish gold and silver as I think higher prices are ahead.

Copper is still trading below its 20 and 100-day moving average as the trend remains negative, however for the bearish momentum to continue we have to break the June 7th low of 2.5995 as we need some fresh fundamental news to send some volatility back into this commodity.

Continue to place the proper stop loss, and if we are stopped out, then look at other markets that are beginning to trend as the commodity markets are starting to develop strong trends.

TREND: LOWER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Continue reading "Weekly Futures Recap With Mike Seery"