Tag: Futures Trading

Silver Futures

Silver futures in the July contract settled last Friday in New York at 15.77 while currently trading at a 16.92 an ounce ending the week on a positive note up over $0.75 as prices have now hit a 2 month high.

I've recommended a bullish position from around the 16.10 level, and if you took that trade, continue to place the stop loss under the 10-day low, which stands at 14.76 as an exit strategy. The chart structure will improve in next week's trade as the monetary risk will also be reduced.

Silver prices are now trading above their 20 and 100-day moving average for the 1st time in 3 months. I do believe a true breakout has occurred as it would not surprise me if prices test the contract high of 19.07, which was hit on February 24th in the coming weeks ahead.

The U.S. equity market is starting to look a little vulnerable as we had one of the worst weeks in quite some time. Money flows are entering the precious metals which look very strong, and I still think silver has room to run. Continue to play this to the upside, and if you are not involved, wait for some price retracement before entering.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Mexican Peso Futures

The Mexican Peso in the June contract settled last Friday at 4189 while currently trading at 4161 down slightly for the week still stuck in a very tight 8-week consolidation pattern looking to break out to the upside in my opinion. I will be recommending a bullish position if prices close above the 42.21 level while then placing the stop loss at 3918 as the risk would be around $1,600 per contract plus slippage and commission. Continue reading "Silver Futures Looking To Test Highs" →

S&P 500 Futures

The S&P 500 futures in the June contract settled last Friday in Chicago at 2821 while currently trading at 2904 ending the week on a positive note trading higher for the 2nd consecutive session. The bullish trend continues even though the unemployment rate is near 15%, which is the highest since the Great Depression.

I am currently not involved, but if you have been following my previous blogs, you understand that I do have a bullish bias. I think higher prices are ahead as the U.S. economy is finally starting to open up as optimism has come about, which is a terrific thing to see.

The Nasdaq-100 has now turned positive in 2020 as the technology sector is doing exceptionally well, and I still see more positive returns going forward. The S&P 500 is trading above its 20-day but still below its 100-day moving average, which is just an eyelash away at 2994. That could be broken in the next couple of weeks as the earnings season is upon us.

Volatility at the current time remains very high, and I don't think that situation is going to end anytime soon. We will now have to wait and see what the statistics are about individuals spending money at retail stores and restaurants.

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

Mexican Peso Futures

The Mexican Peso settled last week at 4023 while currently trading 4190 up over 150 points for the trading week looking to break out of its tight 7-week consolidation. If you have been following my previous blogs, you understand that I am looking at a possible bullish position to the upside.

I will be recommending a bullish position if prices Continue reading "Dismal Jobs Number Doesn't Stop Futures" →

S&P 500 Futures

The S&P 500 futures in the June contract settled last Friday in Chicago at 2829 while currently trading at 2822, basically unchanged for the trading week. However, that is not telling you the whole story as the volatility remains exceptionally high as the Dow Jones is down over 600 points ending the week at a very sour note.

I am not involved as the volatility, and the risk/reward is not in your favor to take a bullish or bearish position. However, I do think the stock market will head higher due to all the stimulus programs. I still see light at the end of the tunnel because many states have started to open up their economies, which is a great thing to see, in my opinion. However, if you are long a futures contract, I would place the stop loss under the 10-day low standing at 2717 as an exit strategy.

There is so much uncertainty at the current time. Until the Coronavirus situation is figured out, you're going to continue to see this market flip flop daily. I am an optimist, and I think that the United States economy will come back strong in the coming weeks. I would take advantage of price weakness to enter into a bullish position. I think many individual stocks are incredibly cheap and should be looked into substantially.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Mexican Peso Futures

The Mexican Peso in the June contract settled last Friday at 3959 while currently trading at 4035 up about 75 points for the trading week still stuck in a 6-week tight consolidation as prices look to have bottomed out in my opinion as prices have absolutely collapsed over the last couple of months due to the Coronavirus situation. Continue reading "S&P 500 Futures Show A Flat Market" →

Gold Futures

Gold futures in the June contract settled last Friday in New York at 1,698 while currently trading at 1,740 up over $40 for the week continuing it's bullish momentum while still experiencing high volatility.

At the current time, I do not have any precious metal recommendations as I was stopped out of silver earlier in the week. However, if you are long a futures contract, I would place the stop loss under the April 21st low of 1,666 as an exit strategy as this is a very high-risk trade with large price swings that we experience daily. For the bullish momentum to continue, prices have to break the April 14th high of 1,788 in my opinion as we are witnessing a bullish trend as we are above the 20 and 100-day moving average. However, the problem with this market at the current time is that it has large sell-offs and then comes back every single time, but it has not been an easy trade to the upside even though we are trading at a 7-year high.

Economic stimulus continues to support prices as the U.S. government is putting trillions of dollars into the economy because of the Coronavirus situation as that is supportive towards the precious metals as trading this commodity should only be dealt with large trading accounts due to the risk.

TREND: HIGHER
CHART STRUCTURE: POOR
VOLATILITY: HIGH

Coffee Futures

Coffee futures in the July contract settled last Friday in New York at 117.55 while currently trading at 109.60 a pound down about 800 points for the trading week hitting a 5-week low as prices look to head back down to the 100 level in my opinion. Continue reading "Gold Futures Trade At Seven Year High" →

S&P 500 Futures

The S&P 500 futures in the June contract settled last Friday in Chicago at 2779 while currently trading at 2840 up about 60 points for the trading week as prices are right near a five week high.

Optimism about a possible remedy from the company Gilead for the Coronavirus is pushing prices higher as the Nasdaq 100 is only down about 10% for the year and has experienced a significant rally over the last week as it certainly looks like the panic bottom which developed in March will hold. The S&P 500 is trading above its 20-day but still below its 100-day moving average as the trend is higher to mixed as the United States quarantine could be over in the next couple of weeks as businesses will start up once again as that is terrific news.

The next major level of resistance is all the way up to the 3000 level. I still think there is room to run to the upside, and I see no reason to be short U.S. equities. I do believe this economy will come back quickly, even though we might have a 20% unemployment rate. So, if you are long a futures contract, I would stay long while placing a tight stop as the volatility remains exceptionally high.

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

Silver Futures

Silver futures in the May contract is ending the week on a sour note down $0.32 or 2.03% at 15.31 an ounce after settling last Friday in New York at 16.05 down over $0.70 for the trading week as prices have now hit a one week low.

The U.S. equity markets have rallied substantially this week as money flows have entered back into that sector and out of the precious metals, at least in the Continue reading "Optimism Fuels Futures Higher" →