Author: Mike Seery

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" →

Gold Futures

Gold futures in the June contract settled last Friday in New York at 1,654 while currently trading at 1,637 an ounce down about $17 for the week still experiencing high volatility daily.

Gold prices remain firm because we have lost about 10 million jobs in the United States of the last two weeks as the unemployment rate has jumped to 4.4%. However, it's pretty much over 10% at the current time as we will wait for next month's monthly unemployment number to confirm that as that should be supportive gold prices as a worldwide slowdown is at hand. Gold prices are trading above their 20 and 100-day moving average as the trend is to the upside. However, the $1,700 level has acted like cement and has not been able to penetrate it on a closing basis, as that is where the true breakout will occur, in my opinion.

The volatility at the current time is exceptionally high. I don't think that situation is going to change anytime soon as all commodity and stock markets are experiencing substantial daily price swings. The Coronavirus has certainly thrown a wrench into the closet as I'm sitting on the sidelines waiting for a better a chart pattern to develop as the risk/reward is not in your favor to take a bearish or bullish position at this time.

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

Silver Futures

Silver futures in the May contract is currently trading at 14.54 an ounce after settling last Friday in New York at 14.53 up slightly for the trading week as prices are right near a 3 week high as prices bottomed out on March 18th at 11.15.

We are keeping a close eye on the U.S economy, which has come to a standstill as the unemployment rate is going Continue reading "Gold Futures Eye Breakout" →

Crude Oil Futures

Crude oil futures in the May contract is trading lower for the 2nd consecutive session after settling last Friday in New York at 22.63 a barrel while currently trading at 22.23 down about 40 cents for the trading week continuing its bearish momentum.

Fundamentally speaking, the energy complex sold off sharply, with oil prices sinking after the Trump administration canceled its plans to buy crude oil to replenish the Strategic Petroleum Reserve (SPR). Then the energy complex extended its losses Thursday on dire predictions from the International Energy Association (IEA).

I am not involved, but I do think prices will break the $20 level as I'm certainly not recommending any bullish position as weakening demand due to the Coronavirus causing millions of Americans to work from home while not driving.

Crude oil prices are trading far below their 20 and 100-day moving average as the trend is to the downside as unleaded gasoline is right near an all-time low as that is also putting pressure on oil in the short-term. If you are short a futures contract, I would place the stop loss at 28.50 as an exit strategy as I do think $15 a barrel is a realistic number that could happen in the coming weeks ahead.

TREND: LOWER
CHART STRUCTURE: POOR
VOLATILITY: HIGH

Silver Futures

Silver futures in the May contract is currently trading at 14.51 an ounce after settling last Friday in New York at 12.38 up over $2 for the trading week experiencing high volatility as prices hit an 11-year low last week. Silver has been mirroring the gold market, which is also having tremendous price swings daily. Continue reading ""Stay Home Save Lives" Drives Oil Futures Lower" →