Tag: Futures Trading

Copper Update: Metal Signals Short Term Bottom For Oil

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


In my previous update, I recommended covering your short positions in Copper to save a decent profit from the sudden reversal. The next day the price dipped further down to a round figure favoring buyback. Then until today, we saw volatile sideways trading inside of the 2.025/2.125 range. Currently, the metal has traded on the upper side of it. In the meantime crude oil has plummeted to an 11-year low and the two assets have diverged sharply since.

Chart 1: Copper-Crude Oil Comparative chart: The Chain Has Been Broken

Copper-Crude Oil Comparative chart
Chart courtesy of tradingview.com

The days following my last Copper/Oil post, Crude oil moved $2 higher as expected, but it couldn't close above the $44 mark and the oversupplied market brought the price down sharply. Despite that, Copper stood still charting a sideways pattern and expanding the triangle. Supply cut fears amid a weakening US dollar have spurred demand for the metal. Continue reading "Copper Update: Metal Signals Short Term Bottom For Oil" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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.

Crude Oil Futures

Crude oil futures in the February contract settled last Friday in New York at 36.06 a barrel while currently trading 36.68 as it looks to me that a possible short-term bottom might be place as I’m currently sitting on the sidelines in this market as I was short heating oil offsetting that trade last week as the easy money has already been made to the downside. Crude oil futures are trading below their 20 and 100 day moving average telling you that the short-term trend is lower and if you’re short this market my recommendation would be to place your stop loss above the 10 day high which currently stands at 39.13 as prices are trading higher for the 2nd consecutive trading session. One of the main reasons for crude oil dropping is the fact of extremely warm weather across the northeastern part of the United States sending heating oil prices sharply lower, therefore curbing demand for crude oil coupled with the fact that OPEC did not cut production and actually increased production as it certainly seems that they want lower prices here in the short-term. Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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.

Crude Oil Futures

Crude oil futures in the January contract settled last Friday in New York at 36.62 a barrel while currently trading at 34.88 down slightly for the trading week continuing its bearish trend as I was recommending a short position in heating oil offsetting that position last Monday as I’m currently sitting on the sidelines in the energy complex. At the current time crude oil prices are trading far below their 20 and 100 day moving average as this market seems to be headed lower in my opinion, but I am a little concerned that everybody is extremely bearish and generally when everybody’s on one side of the boat that can be a dangerous indicator in my opinion. The commodity markets in general look very weak as there is the possibility in my opinion that prices can trade down to $25 as OPEC not only did not cut production they increased production as they are playing chicken with world production trying to push prices lower sending many other countries including the United States out of producing oil as Saudi Arabia can still be profitable even if these lower levels as many other countries cannot as they will have to slow down production. Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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.

Crude Oil Futures

Crude oil futures in the January contract finished lower for the 6th consecutive trading session settling in New York last Friday at 39.97 while currently trading at 35.69 a barrel down over $4 dollars for the trading week hitting a 7 year low as I had a short position in heating oil and not in crude oil which was disappointing because crude oil continues to move lower as well. Heating oil has been the leader in this complex due to extreme warm weather in the northeastern part of the United States as that product was down another 700 points once again as there is very little demand causing crude oil prices to continue to move lower as I'm certainly not recommending any type of bullish position. Crude oil prices are trading far below their 20 and 100 day moving average telling you that the short-term trend is to the downside as I think prices could trade as low as $30 in the coming weeks, but the easy money has already been made to the downside as gasoline prices were higher once again as spreading between heating oil and gasoline continues almost on a daily basis. The reason for the rise in gasoline prices is the fact of strong demand because people are driving and taking advantage of the warm weather, but eventually the cold weather is coming and then I think that gas prices will react negatively and catch up to the rest of the complex. Continue reading "Weekly Futures Recap With Mike Seery" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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.

Crude Oil Futures

Crude oil futures in the January contract are trading below their 20 and 100 day moving average telling you that the short-term trend is to the downside settling in New York last Friday at 41.90 a barrel while currently trading at 42.40 up around 50 cents for the trading week as prices have been going sideways recently improving the chart structure dramatically. At the current time I’m not involved in this market, but it sure looks to me that lower prices are ahead as the U.S dollar hit 100 this morning putting pressure on the precious metals and the energy sector once again despite the fact that rig counts hit a 6 year low meaning that we should be producing less oil which should prop up prices, however at the current time worldwide inventories are massive. Continue reading "Weekly Futures Recap With Mike Seery" →