Tag: Futures Trading

Precious Metal Futures Sell-Off

Posted on by Mike Seery

Gold Futures

Gold futures in the December contract settled last Friday in New York at 1,974 while currently trading at 1,931 an ounce, down about $43 for the trading week still stuck in a 3 week consolidation.

If you look at the daily chart, we generally trade between 1,900/2,000, looking to break out above or below those critical levels in the next several days. I'm not involved in gold at the current time, but I do have a bullish bias as I think higher prices are ahead as prices are consolidating the massive run-up in price that we've witnessed over the last 6 months. Presently I also have a bullish silver recommendation as we're very close to getting stopped out of that trade as the US dollar is up about 50 points today, throwing some water on the bullish trend.

Gold prices are trading below their 20-day moving average for the first time in months, but still far above their 100-day. The trend is neutral to higher, so sit on the sidelines and wait for the breakout to occur; therefore, the risk/reward would be more in your favor as trading choppy markets are very difficult.

TREND: MIXED - HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Silver Futures

Silver futures in the December contract is trading lower for the 3rd consecutive session down another $0.25 at 26.63 an ounce as prices are bouncing off of major support on the daily chart.

I have been recommending a bullish position for the last couple of months from the 18.61 level, and if you took that trade, the stop loss has now been raised to 26.29 on a hard basis only as I'm not willing to risk any more than that critical price level. At the current time, we are just an eyelash away from being stopped out and if that does occur, look at other markets that are beginning to trend as I think we will consolidate in silver for quite some time. Still, I do believe the precious metals will continue to move higher over time. Continue reading "Precious Metal Futures Sell-Off" →

S&P 500 Futures Hit All-Time High

Posted on by Mike Seery

S&P 500 Futures

The S&P 500 futures in the September contract is currently trading at 3491 as prices are experiencing a 7-day winning streak hitting an all-time high this week trade continuing its bullish momentum as this by far is the strongest trend out of all sectors to the upside.

The Nasdaq-100 also hit another all-time high this week as money flows continue to enter this sector because there is nowhere else to park your money, and that situation is not going to change at least throughout 2020. If you are long a futures contract, continue to place the stop loss under the 10-day low at 3344 as an exit strategy. However, the chart structure will improve in 3 trading sessions. Therefore, the monetary risk will be lowered as I still think higher prices are ahead.

The S&P 500 is trading far above their 20 and 100-day moving average. The trend is strong to the upside continually grinding higher daily as the volatility has certainly decreased over the last couple of weeks. I think the commodity and stock markets continue to move higher. I see no reason to be short while trying to pick the top as that is extremely dangerous over time, as trading with the path of least resistance is the most successful way to trade, in my opinion.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: AVERAGE

Silver Futures

Silver futures in the September contract settled last Friday in New York at 26.73 while currently trading at 27.57 an ounce up over $0.80 continuing it's bullish momentum still experiencing crazy volatility daily.

I have been recommending a bullish position over the last couple of months all the way back from the 18.61 level. If you took that trade, continue to place the stop loss under the 10-Day low now standing at 26.09 as an exit strategy and the proper money management technique. Continue reading "S&P 500 Futures Hit All-Time High" →

Silver Futures Experience Volatile Week

Posted on by Mike Seery

Silver Futures

Silver futures in the September contract experienced one of the craziest trading weeks of all time as the volatility is extraordinarily high as prices traded as high as 29.91 before selling off to 23.58 having over a $6 trading range for the week as this commodity is not for the light-hearted.

I have been recommending a bullish position over the last month or so from the 18.61 level, and if you took that trade, continue to place the stop loss under the 2 week low standing at 23.58 as an exit strategy. However, the chart structure will not improve for another 8 trading sessions, so you will have to accept the monetary risk at this time. If you are not involved in this market, I would avoid it like the plague as the risk/reward is not in your favor, as I still think higher prices are ahead. Still, there is a high probability that we could consolidate the recent run-up in price over the next couple of weeks.

At the same time, I also have a bullish platinum trade, which continues to move higher weekly as the U.S. dollar is at a 2 year low. That is a fundamental bullish factor coupled with the fact that the Coronavirus situation doesn't seem to end anytime soon, so stay long.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Platinum Futures

Platinum futures in the October contract settled last Friday at 970 an ounce while currently trading at 974 in a crazy volatile trading week as prices cracked the 1,000 level once again before profit-taking came about.

I have been recommending a bullish position over the last month or so from around the 868 level. If you took the trade, continue to place the stop loss on a closing basis only at 930 as an exit strategy. However, the chart structure will not improve for quite some time, so you will have to accept the monetary risk. Platinum prices are still Continue reading "Silver Futures Experience Volatile Week" →

Will The Futures Market Join The Party?

Posted on by Mike Seery

Silver Futures

Silver futures in the September contract settled last Friday in New York at 24.21 while currently trading at 28.50 up over $4 for the trading week hitting a 7-year high as the entire precious metal sector has exploded to the upside. Gold prices hit all-time highs this week helping support silver as prices traded as high as 29.91 in today's session, and if you have been following my previous blogs, you understand that I thought the $30 level could be touched.

I have been recommending a bullish position over the last month from around the 18.61 level, and if you took that trade, continue to place the stop loss under the 2 week low standing at 22.46 as an exit strategy. However, I did have several clients take profits around the $29 level as it all depends on your trading account size and risk tolerance at this time as the volatility is crazy. I think we will start to consolidate over the next couple of weeks, but I still think we are in a bullish secular trend that will last for several years. All the stimulus packages are finally coming to fruition helping push up asset classes, and I do believe the rest of the commodity markets will start to join the party.

Silver prices are trading far above their 20 and 100-day moving average as the trend clearly as to the upside as prices are in extreme overbought conditions, and if you are not involved in this trade, I would sit on the sidelines as the risk/reward is not in your favor.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Platinum Futures

Platinum futures in the October contract ended the week on a sour note down $43 at 970 an ounce after settling last Friday in New York at 918 up over $50 for the trading week as prices hit a fresh contract low in today's trade. Continue reading "Will The Futures Market Join The Party?" →

Futures Market Showing Signs Of Life

Posted on by Mike Seery

Natural Gas Futures

Natural gas futures in the September contract settled last Friday in New York at 1.86 while currently trading at 1.85 unchanged for the trading week and looking for a trend to develop to the upside, in my opinion. Currently, I am not involved as I am waiting for a bullish trend to develop. I think there's a high probability that a spike bottom was created on June 26th at 1.58. In general, the commodity markets are starting to show signs of life as the U.S. dollar continues its bearish trend.

Gas prices are now trading above its 20-day but still below its 100-day moving average. However, if you take a look at the daily chart, major support has developed between 1.60/1.65, so look to play this to the upside in the coming weeks ahead as I believe the risk/reward would be in your favor. The chart structure will also start to improve daily; therefore, the monetary risk will be reduced in next week's trade. Historically speaking, prices are incredibly depressed.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

Silver Futures

Silver futures in the September contract settled last Friday in New York at 22.85 an ounce while currently trading at 23.94 up over $1.00 for the trading week as prices are right near a 7-year high. Continue reading "Futures Market Showing Signs Of Life" →