Category: INO.com Contributors

Optimism Fuels Futures Higher

Posted on by Mike Seery

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" →

World Oil Supply And Price Outlook, April 2020

Posted on by Robert Boslego

The Energy Information Administration released its Short-Term Energy Outlook for April, and it shows that OECD oil inventories likely bottomed last June 2018 at 2.802 billion barrels. It estimated stocks built by 109 million barrels in March to end at 3.059 billion, 201 million barrels higher than a year ago.

For 2020, OECD inventories are projected to build by 468 million barrels to 3.351 billion. For 2021 it forecasts that stocks will draw by 207 million barrels to end the year at 3.144 billion.

OECD Global Oil Inventories

The EIA forecast was made prior to the OPEC+ decision to cut production and exports. According to OPEC’s press release: Continue reading "World Oil Supply And Price Outlook, April 2020" →

Now May Be The Best Time To Invest In China

Posted on by Matt Thalman

The current COVID-19 pandemic that has halted world economic activity began back in December of 2019 in the country of China. For weeks the world watched as the Chinese government dealt with the viral outbreak. Some called the Chinese government's decision to 'lock-down' the city of Wuhan in the Hubei province and other major cities that were experiencing growing COVID-19 case rates as 'draconian.'

The spread of the virus slowed in China due to the 'extreme' measures they took, but pandora's box had been opened, and the virus had spread throughout the world. At this time, most of China is back to normal in terms of businesses being open, workers returning to factories, and most of the country no longer being in a lock-down situation. However, the lock-downs in China started on January 23rd, and Wuhan, for example, is still under strict movement rules.

In comparison, most European countries, the U.S., and other developed nations just went into 'restricted movement orders' in the last week of March. So, in those terms, China is two months ahead of the rest of the world in terms of fighting this disease and slowing economic activity as a form of fighting the spread of the disease. That also means they are likely two months ahead of the world in terms of when it comes to 'getting back to normal' or getting the economy back up and running.

So, since China is 'ahead' of everyone else, we could induce that some Chinese companies, mainly those who serve the Chinese people, will start to perform better financially, sooner than other companies around the world. This leads to the potential investment opportunity that is currently presenting itself in China, while the rest of the world is in a holding pattern waiting for the second shoe to fall before, they put more money to work in the markets.

So, let's take a look at a few ETFs that you can invest in today, which will give you exposure to the Chinese economy, and potentially a Continue reading "Now May Be The Best Time To Invest In China" →

Silver Is A Game Changer

Posted on by Aibek Burabayev

Last month I shared with you “Three Options To Go” for silver price, namely “Optimistic”, “Pessimistic” and the sideways option called “Extended consolidation” on one chart. Below are your bets for each option.

Silver

Most of you chose the “Optimistic” option where silver should continue to the upside after completing the correction. It’s a rare case when the minority was right as the “Pessimistic” scenario played out the next week after the post. The metal’s price dropped into the abyss at $11.64, reaching the 11-year low in the price area of distant January 2009. I think this move surprised not only me, although I said that it could reach $11 area, but even those who clicked the right answer as it was so quick as price sank within a few weeks from $16.66 for 30%!!!

Silver just can’t stop surprising us as it suddenly changes from latency mode to explosion mode and back, again and again.

The interesting thing happened next Continue reading "Silver Is A Game Changer" →