We’ve asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Precious Metal Prices--- The precious metals this week were relatively quiet due to the fact that the fiscal cliff announcement comes out in just a couple of days keeping gold below its 20 and 100 day moving average right near a 4 month low trading right around 1, 655 down around $5 dollars for the week as traders are unwilling to stick their neck out before the December 31st fiscal cliff announcement while silver futures are still trading below their 20 and 100 day moving average down around 20 cents for the week as well with major support at 29.70 right near a 4 month low with traders being very cautious going into the holiday weekend. Copper futures were the one bright spot this week trading slightly higher but still trading below their 20 and 100 day moving average rebounding slightly on the fact that the housing data has been really solid in the last couple of weeks propping copper prices higher. In my opinion I believe you sit on the sidelines until this announcement is made and once that happens look to get back into the market in my opinion on the long side but at this point in time I don’t think anybody should risk anything going into the weekend. If the fiscal cliff is not resolved I would have to think that prices across the board would be sharply lower on the 1st trading day of next year which will be Wednesday and if they do agree on a solid agreement I would have to think that the markets across the board would be sharply higher but at this point in time as I write this this Friday afternoon it looks like there will not be an agreement this year, however as I’ve seen some politicians state that it is still possible to come up with an agreement in January so they can extend this and that’s what I think will happen Congress will kick the can down the road for 3 or 4 more weeks and then settle this in either late January or early February. TREND: LOWER –CHART STRUCTURE: EXCELLENT
Grain Futures-- The grain market this week was relatively quiet with soybeans still trading below their 20 and 100 day moving average down around $.10 cents for the trading week with major support right at $14 dollars a bushel basically in a sideways trade waiting for the announcement of the fiscal cliff resolution as traders are sitting on the sidelines at this point in time while corn futures are still trading below their 20 and 100 day moving average with a gap on the daily chart down at 6.80 and in my opinion I do believe that gap will be filled in the next couple of days right at a six-month low down around $.10 cents for the trading week continuing its bearish momentum and in my opinion I am extremely bearish the corn and the wheat markets and I think they will start to pressure soybeans here in the near future. Wheat futures for the March contract are trading below their 20 and 100 day moving average down around $.15 cents for the trading week hitting a fresh 6 month low on increases in supplies around the world as well as good growing conditions here in the United States and in many other key wheat growing regions. In my opinion I believe corn prices are headed down to about 6.50 a bushel and I do believe we will break $7 a bushel in the wheat market in the next 3 to 4 weeks continuing its bearish momentum on the fact that demand is slowing down and prices have not been able to rally despite the fact that the U.S dollar continues to head lower against the foreign major currencies which generally is a bullish indicator but has not helped prices at all. Volatility will increase next week along with volume as these markets have been very quiet in the last 7 to 10 days and I do believe next Wednesday which is the 1st trading day of the new year you will see some tremendous volatility across the board in all of the commodities and stock markets around the world. TREND: LOWER –CHART STRUCTURE: EXCELLENT
Energy Futures-- The energy futures this week continued their bullish momentum despite many of the other commodity sectors selling off with crude oil still trading above its 20 day moving average and now looking at its 100 day moving average which is at 91.72 while currently trading in the February contract at 90.60 in a relatively quiet day with the announcement of the fiscal cliff imminent so then traders can stick their neck out again in either direction , however crude oil is right near 8 week high after having a nice rounding bottom with major support around $86 finishing higher by $2 for the trading week. Heating oil futures for the January contract were up slightly for the week with major resistance at 3.10 which would be an 8 week high and in my opinion it looks like the energies are headed higher at this point also pushing unleaded gas prices sharply higher for the week up around 700 points hitting a 3 month high trading far above its 20 and 100 day moving average right near contract highs at 2.85 a gallon in my opinion I do believe the bull markets in the energy sector are here and will continue in the month of January. All of these energy charts have outstanding chart structure especially crude oil which tells me prices will head higher especially with economies around the world improving which definitely props up energy prices because the fact that there could be more demand here in the United States and around the world in 2013. I’m advising traders to be long crude oil and long unleaded gasoline and wait for heating oil to break 3.10 before entering on the long side with the possibility of $100 dollars a barrel in crude oil within the next 5 to 7 weeks in my opinion. TREND: HIGHER –CHART STRUCTURE: EXCELLENT
If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading or visit www.seeryfutures.com
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.
Michael Seery, President
Seery Futures
Twitter–@seeryfutures
Phone # (800) 615-7649
