Will The Futures Market Join The Party?

Silver Futures

Silver futures in the September contract settled last Friday in New York at 24.21 while currently trading at 28.50 up over $4 for the trading week hitting a 7-year high as the entire precious metal sector has exploded to the upside. Gold prices hit all-time highs this week helping support silver as prices traded as high as 29.91 in today's session, and if you have been following my previous blogs, you understand that I thought the $30 level could be touched.

I have been recommending a bullish position over the last month from around the 18.61 level, and if you took that trade, continue to place the stop loss under the 2 week low standing at 22.46 as an exit strategy. However, I did have several clients take profits around the $29 level as it all depends on your trading account size and risk tolerance at this time as the volatility is crazy. I think we will start to consolidate over the next couple of weeks, but I still think we are in a bullish secular trend that will last for several years. All the stimulus packages are finally coming to fruition helping push up asset classes, and I do believe the rest of the commodity markets will start to join the party.

Silver prices are trading far above their 20 and 100-day moving average as the trend clearly as to the upside as prices are in extreme overbought conditions, and if you are not involved in this trade, I would sit on the sidelines as the risk/reward is not in your favor.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Platinum Futures

Platinum futures in the October contract ended the week on a sour note down $43 at 970 an ounce after settling last Friday in New York at 918 up over $50 for the trading week as prices hit a fresh contract low in today's trade. Continue reading "Will The Futures Market Join The Party?"

Futures Market Showing Signs Of Life

Natural Gas Futures

Natural gas futures in the September contract settled last Friday in New York at 1.86 while currently trading at 1.85 unchanged for the trading week and looking for a trend to develop to the upside, in my opinion. Currently, I am not involved as I am waiting for a bullish trend to develop. I think there's a high probability that a spike bottom was created on June 26th at 1.58. In general, the commodity markets are starting to show signs of life as the U.S. dollar continues its bearish trend.

Gas prices are now trading above its 20-day but still below its 100-day moving average. However, if you take a look at the daily chart, major support has developed between 1.60/1.65, so look to play this to the upside in the coming weeks ahead as I believe the risk/reward would be in your favor. The chart structure will also start to improve daily; therefore, the monetary risk will be reduced in next week's trade. Historically speaking, prices are incredibly depressed.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

Silver Futures

Silver futures in the September contract settled last Friday in New York at 22.85 an ounce while currently trading at 23.94 up over $1.00 for the trading week as prices are right near a 7-year high. Continue reading "Futures Market Showing Signs Of Life"

Precious Metal Futures Continue To Shine

Gold Futures

Gold futures in the August contract settled last Friday in New York at 1,810 an ounce while currently trading 1,902 up about $92 for the trading week as prices are right near all-time highs trading higher for the 5th consecutive session.

If you have been following my previous blogs, you understand that I thought gold prices would break 2,000. I think that could possibly happen in next week's trade as prices still look cheap, in my opinion, and if you are long a futures contract continue to place the stop loss under the 10-day low standing at the 1,791 area as an exit strategy.

Gold prices are trading far above their 20 and 100-day moving average as this is the strongest trend out of all asset classes at the current time. Who knows how high prices can go as that is why the theory states to hold on to winners and exit losers quickly.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Silver Futures

Silver futures in the September contract settled last Friday in New York at 19.76 an ounce while currently trading at 23.03 up over $3 for the trading week with prices touching a 6 year high. I have been recommending a bullish position over the last month or so from around the 18.61 level, and if you took that trade, continue to place to stop loss under the 10-day low at 19.24 as the exit strategy. However, the chart structure will improve in next week's trade; therefore, the monetary risk will also be reduced. Continue reading "Precious Metal Futures Continue To Shine"

Silver Futures Hit New 10-Month High

Silver Futures

Silver futures in the September contract settled last Friday in New York at 19.05 an ounce while currently trading at 19.75 up $0.70 for the trading week as prices have now hit a 10-month high. The US dollar is lower by 35 points today, breaking the 96 level as that is a fundamental bullish factor towards the precious metals, including silver, as I think prices will break the $20 level come next week.

I have been recommending a bullish position over the last month from around the 18.61 level. If you took that trade continue to place the stop loss under the 10-day low standing at 18.23, however, in next week's trade, the stop loss will be tightened significantly, therefore lowering the monetary risk.

Silver prices are trading far above their 20 and 100-day moving average as the trend is strong to the upside as gold prices are right at a 9-year high. I also have a bullish recommendation in platinum, as the entire sector is in the midst of a solid trend to the upside. If prices crack the $20 level, look for the volatility to expand tremendously as the price swings will have a large percentage move daily. I still think we can head up to the $25/$30 level.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Natural Gas Futures

Natural gas futures in the September contract settled last Friday in New York at 1.85 while currently trading at 1.78 down slightly for the trading week as prices are still near a multi-decade low. Prices topped out recently on June 7th around the 1.99 level while bottoming out on June 26th at 1.58 basically right in the middle part of that range looking for a fresh trend to the upside to develop, in my opinion. Continue reading "Silver Futures Hit New 10-Month High"

Summer Weather Impacts Futures

Corn Futures

Corn futures in the December contract settled last Friday in Chicago at 3.53 a bushel while currently trading at 3.54 unchanged as traders are awaiting the WASDE crop report with estimates around 2.683 billion bushels as the carryover level. Any number below that number will be construed as bullish. In contrast, any amount higher than that number would be construed as bearish as the weather will now be the short-term dictator of price action. The 7-10 day weather forecast still has above-average temperatures. However, the crop at the current time has estimates around 71% good/excellent condition.

I am not involved as I do have a bullish soybean recommendation.
However, if you are long a futures contract, I would place the stop loss under the contract low standing at 3.22 as an exit strategy. I'm keeping a close eye on this market for a bullish position as I want the chart structure to improve, and that will take another couple of days or a replacement in price.

Corn prices are still trading above their 20 and 100 a moving average as the trend is higher as prices are still hovering right near a 3 month high with the next major level of resistance at the 3.60 area and if that is broken, I think we can head up to the $4 level as I see no reason to be short.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Soybean Futures

Soybean futures in the November contract settled last Friday in Chicago at 8.96 a bushel while currently trading at 9.01, basically unchanged for the week. I have been recommending a bullish position from around the 8.97 level. If you took that trade, continue to place the stop loss at 8.56 as an exit strategy as the chart structure will improve early in next week's trade, therefore lowering the monetary risk. Traders are awaiting this afternoon's WASDE crop report with estimates around 414 million bushel carryover as that report will certainly send volatility back into this market. Continue reading "Summer Weather Impacts Futures"