Tag: Futures Trading

Weekly Futures Recap With Mike Seery

Posted on by Mike Seery

Gold Futures

Gold futures in the December contract settled last Friday in New York at 1,462 while currently trading at 1,466 up about $4 for the week. However, ending the week on a sour note as all of the interest still lies in the S&P 500, which is hitting another all-time high as money flows continue to come out of gold.

At the current time, I do not have any precious metal recommendations, but I do believe gold prices are headed lower as I see no reason to be a buyer as prices are right near a 3 1/2 month low. Gold prices are trading under their 20 and 100 day moving average as the trend is to the downside, and if you take a look at the daily chart, the down trend line also remains intact as optimism about a trade deal with China continues to depress prices in the short-term.

The 10-year note is currently yielding 1.90% as that has rallied from 1.30% just a couple of months ago and that is also another negative after towards gold prices so if you are short stay short in my opinion so place the stop-loss above the 10-day high which stands at 1,517 as an exit strategy.

TREND: LOWER
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

S&P 500 Futures

The S&P 500 in the December contract settled last Friday in Chicago at 3090 while currently trading at 3112 up about 22 points for the trading week, hitting another all-time high as the gravy train continues and I still believe it will continue throughout the holiday season. Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by Mike Seery

Natural Gas Futures

Natural gas futures in the December contract settled last Friday at 2.45 while currently trading at 2.58 up about 13 points for the trading week as prices hit a five-week high yesterday before profit-taking took place.

Natural gas prices are trading above their 20 and 100-day moving average as the trend has turned higher as fundamentally speaking the EIA reported Thursday that gas inventories rose 89 bcf higher than expectations of 86 bcf and well above the 5-year average of 65 bcf.

Expectations that the spread of cold temperatures in the U.S. will boost heating demand for gas. The Commodity Weather Group said on Thursday that temperatures would be below normal across most of the lower 48 U.S. states through Nov 14 with "winter-like conditions that include heavy snows in the central U.S."

I am not involved as I still think the price gap that was created on Oct 28 between 2.48/2.50 will be filled soon. Then I will be looking at a bullish position as I believe that the 2.40 will hold, especially as we enter the volatile winter season as price swings will become more violent to the upside.

TREND: HIGHER - MIXED
CHART STRUCTURE: SOLID
VOLATILITY: AVERAGE
Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by Mike Seery

Silver Futures

Silver futures in the December contract is trading higher for the 2nd consecutive trading session ending the week on a positive note up 40 cents at 18.20 an ounce after settling last Friday in New York at 17.57 up about 63 cents for the week hitting a four week high.

Dovish comments Thursday from ECB President Draghi bolstered the outlook for additional ECB stimulus measures, which was positive for the precious metals when he said the incoming data confirm "protracted weakness of the Eurozone economy.

I am recommending a bullish position if prices close above 18.00 while then placing the stop loss under the 10-day low standing at 17.18 as the risk is around $2,050 per 2 mini contracts plus slippage and commission as this market looks to test the contract high at 19.75 in my opinion.

I also have a bullish recommendation in copper as the whole sector looks to move higher. Silver prices are trading above its 20 and 100-day moving average as the trend has turned to the upside, so play this higher while making sure that you risk 2% of your account balance on any given trade.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH
Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by Mike Seery

S&P 500 Futures

The S&P 500 futures in the December contract settled last Friday in Chicago at 2970 while currently trading at 2993 up about 23 points for the week as this market looks to move higher, in my opinion, however, I'm currently not involved.

The S&P is trading above its 20, and 100-day moving average as the trend has turned higher. However, the chart structure is poor at the current time. Therefore, the risk/reward is not in your favor. Still, I am not recommending any short position as I do think going into the holiday season prices will hit all-time highs.

We are in the midst of earnings season as that will undoubtedly dictate short-term price action, and so far, the earnings have been very solid as the U.S economy by far is the best in the world. If you take a look at the daily chart, there is major resistance at the 3000 level, and if we can close above that area, I think prices could be off to the races as extremely low-interest rates are also helping to support stock prices at this time.

TREND: HIGHER
CHART STRUCTURE: POOR
VOLATILITY: AVERAGE
Continue reading "Weekly Futures Recap With Mike Seery" →

Bitcoin And Cryptos Tank After Futures Trading Begins

Posted on by Matt Thalman

During the last week of September, the major cryptocurrencies got crushed. Bitcoin fell more than 20% from September 21st through September 26th and then slightly rebounded on the 27th by a little less than 2%. A 20% drop for the most well-known cryptocurrency is not uncommon these days, as it fell that much back in July. However, that doesn’t make it an easy pill to swallow when it happens.

But while Bitcoin fell 10% on September 24th, it's closet rivals, Ethereum, Ripple, Litecoin, and bitcoin cash fell even more, somewhere between 15% and 20% respectively. The likely cause was the lack of interest from institutional investors after the highly anticipated Bakkt crypto platform began trading its “physically” settled bitcoin futures contracts.

The Bakkt platform was announced more than a year ago and had partnerships with Microsoft and Starbucks and was being touted as a way for institutional investors to get involved with cryptocurrencies. The platform allows futures trading of crypto’s but settles the order with physical coins, not cash like other crypto futures platforms currently offer. The thinking was that because the futures contracts had to be settled with actual coins, this would increase the demand for the different crypto’s being traded through the futures contracts.

However, during the first hour, the platform was live, only five contracts were traded, and even after ten hours, only 28 contracts had traded hands. Many industry experts, both who follow the crypto markets and general futures contracts actually have come out and stated this sort of activity is normal for the first few days of a new commodity being offered through regulated futures contracts. They claim some brokers aren’t ready to clear it, while others want to wait and see how things go, while others may not even have the tickers populated on their risk systems. Continue reading "Bitcoin And Cryptos Tank After Futures Trading Begins" →