Tag: Futures Trading

S&P 500 Futures

The S&P 500 in the March futures contract is currently trading at 3332 after settling last Friday in Chicago at 3325 continuing its bullish momentum to the upside despite fears of the Coronavirus spreading affecting global growth.

The S&P 500 is trading higher for the 3rd consecutive session, hitting another all-time high this week, and if you are long a futures contract place the stop loss under the 2 week low which now stands at 3260. The chart structure will improve next week, therefore, lowering risk as this gravy train continues to the upside as earnings have been very solid.

I see absolutely no reason to try to pick a top and get short this market. If you have been following any of my previous blogs, you understand that I think 2020 will be a good year for the stock market as January is off to an excellent start, up about 4%.

The S&P 500 is trading far above its 20 and 100-day moving average as this is one of the strongest trends to the upside. That is why trading with the path of least resistance is the most successful way to trade over time as picking tops or bottoms is extremely difficult and fruitless, in my opinion.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: AVERAGE

Platinum Futures

Platinum futures in the April contract are ending the week on a positive note up $10 at 1,017 after settling last Friday at 1,024 in New York down slightly for the trading week still consolidating the recent run-up that we have experienced over the previous couple of months. Continue reading "Bullish Momentum Continues For Futures" →

Copper Futures

Copper futures in the March contract settled last Friday in New York at 2.8135 a pound while currently trading at 2.8455 up over 300 points for the trading week continuing its bullish momentum. The housing market is on fire at the current time following the U.S. economy, which continues to accelerate to the upside.

I am keeping a close eye on a bullish position as I'm currently not involved. Still, I'm certainly not recommending any type of bearish position as that would be counter-trend trading, which is very dangerous over time. However, if you are long a futures contract, I would continue to place the stop loss under the 10-day low standing at 2.76 as an exit strategy.

If you have been following any of my previous blogs, you understand that I'm very bullish the U.S. economy, as that will be a bullish factor for copper prices ahead. I will take advantage of any price to buy in next week's trade, therefore, taking advantage of lower prices while also lowering the monetary risk, so keep a close eye on this market. I think prices could crack the 3.00 level in the coming weeks ahead as the risk/reward would be in your favor if that situation occurred.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

Platinum Futures

Another wild trading session in platinum as prices are up another $23 an ounce at 1,024 after settling last Friday in New York at 986 up about $38 for the trading week as prices are right at a two year high. The precious metal sector is higher across the board once again, continuing its bullish momentum. Continue reading "Copper Futures Continue Bullish Momentum" →

10-Year Note Futures

The 10-year note futures in the March contract settled last Friday in Chicago at 129/12 while currently trading at 129/03, experiencing a wild trading week with large price swings daily. In Wednesday's trade, prices traded as high as 130/06 before selling off rather dramatically as tensions with the country of Iran simmered down.

However, I will be recommending a bullish position if prices close above 129 /14 while then placing the stop loss at 127 / 29 as the risk is around $1,500 per contract plus slippage and commission. In my opinion, I do not think the Federal Reserve will not raise interest rates in 2020. That is a fundamental bullish factor towards higher prices ahead, coupled with the fact that the risk/reward is in your favor as volatility certainly has come to life. I don't think the problem with Iran is over with yet as there will be more skirmishes down the road.

If you take a look at the daily chart, the 10-year note has bounced off the 128/00 level on a half a dozen occasions as the yield is 1.82%. I think we can head back down to around the 1.50% level as you have to remember many countries around the world still have negative interest rates, so look to be a buyer.

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

Silver Futures

Silver futures in the March contract settled last Friday in New York at 18.15 an ounce while currently trading at 18.15 unchanged for the trading week, however, that doesn't tell you the whole story as in Wednesdays trade prices went as high as 18.89 before selling off on tensions with the country of Iran which have seemed to settle down.

I have been recommending a bullish position from around the 17.45 level and if you took that trade continue to place the stop loss under the 10-day low with now stands at 17.81 as an exit strategy as the chart structure is outstanding. Currently, I also have a bullish platinum recommendation as I took profits on the gold trade last Sunday. Still, I do believe the entire precious metal sector is headed higher as the tensions with Iran could resurface in a New York minute as that would send prices even higher, so stay long as the risk/reward remains in your favor. Continue reading "Weekly Futures Recap With Mike Seery" →

Orange Juice Futures

Orange juice futures in the March contract is currently trading at 101.35 after settling last Friday in New York at 100.55 up slightly for the trading week still experiencing very low volatility.

I have been recommending a bullish position from around the 103.30 level, and if you took that trade, continue to place the stop loss under the multi-year low, which stands on December 6th at 97.90 on a closing basis only as the proper exit strategy. Volatility should start to expand to the upside as we enter the volatile winter season for the State of Florida, which could produce a frost that would decimate the orange crop, sending prices sharply higher. However, the 7/10 day weather forecast has ideal weather temperature, as that is why prices have been stuck in the mud. Juice prices are trading above their 20-day but still below their 100-day moving average as the trend is mixed at the current time, but I still do believe that the risk/reward is in your favor to take a bullish position.

I also have a bullish cotton recommendation as we were stopped out of the sugar trade yesterday as I still do believe the agricultural markets are amid bullish trends as I think the downside is limited, so stay long.

TREND: MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW

Gold Futures

Gold futures in the February contract is sharply higher this Friday afternoon as the United States killed the number 2 leader of the country of Iran sending shockwaves throughout many sectors today. That sent gold up $23 at 1,552 an ounce after settling last Friday at 1,518up about $34 for the trading week. Continue reading "Weekly Futures Recap With Mike Seery" →