Trading for the week of February 6th through February 10th ended with the S&P 500 closing higher. Posting a new record high as it renews the long term rally. The high range close sets the stage for a steady to higher opening when Monday’s session begins trading. Of course that means it is time for a heads up from our trading partner Michael Seery. We’ve asked him to give our readers a recap of the this weeks futures markets and give us some insight on where he sees these markets headed. Mike has been a senior analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Crude oil futures in the March contract settled last Friday at 53.83 a barrel while currently trading at 53.70 basically unchanged as I’m looking for a breakout above 54.34 for a bullish position to the upside as prices have gone nowhere over the last 2 months. Oil in Wednesday’s trade hit a 9 week low creating a false breakout to the downside before rallying & finished higher on the trading session as prices have now traded up for the last 3 consecutive days so keep a close eye on this market as I still think higher prices are ahead. OPEC continues to hint that they might cut production in 2017 as they would like to see prices between $65/$75 a barrel and I think they will use their power to enhance prices as we are still trading above the 20 & 100 day moving average telling you that the short term trend is higher. The chart structure will start to improve later next week as a breakout is looming in my opinion as we are just not going to trade sideways forever as the commodity markets still look bullish in my opinion. If prices do break the 54.40 level, I think we could retest the double top around $56. However, we need some fresh fundamental news to push prices higher as the dollar remains stubbornly high.
Chart Structure: Improving
Platinum futures in the April contract settled last Friday in New York at $1,006 an ounce while currently trading at the same price as I am now recommending a bullish position from around the 1,008 level and if you take this trade place your stop loss under $988 as the chart structure is outstanding. Platinum prices are down $16 in early trade this Friday morning so take advantage of the price dip as prices are still trading above their 20 and 100 day moving average telling you that the short term trend remains to the upside. At present I’m also recommending bullish positions in silver and in the copper market as the precious metals, in general, continue to move higher, however, early strength from U.S dollar has put pressure on platinum, but the risk/reward is now in your favor which is what trading is all about. The next major level of resistance is yesterday’s high of $1,032 which were levels that we have not seen since the month of October and if that is broken you would have to think that the bullish trend would continue so play this to the upside while risking 2% of your account balance on any given trade.
Chart Structure: Excellent
Silver futures in the March contract settled last Friday in New York at 17.48 an ounce while currently trading at 17.77 up around $0.30 for the trading week continuing its nonvolatile bullish momentum as I’ve been recommending a bullish position over the last month with an average price around the 17 level and if you took the trade place your stop loss at 10 day low which now stands at 17.10 as that will improve on Tuesday at 17.26, therefore, lowering monetary risk. The next major level of resistance is Wednesday’s high around 17.87 & if that is broken, I think prices will head to the $18 range as I’m also recommending a bullish position in copper which is up about 1000 points this Friday afternoon as I remain bullish the entire precious metal sector. Silver prices are now trading above their 20 and 100 day moving average telling you that the short term trend is higher as I still think prices are going to retest the $19 level that’s where silver was trading right when Trump was elected, as the commodity markets are looking strong despite the fact that the U.S dollar remains firm so continue to play this to the upside.
Chart Structure: Solid – Improving
The U.S dollar in the March contract settled last Friday at 99.84 while currently trading at 100.81 up about 100 points for the trading week as I’ve been recommending a bearish position from around the 99.85 level & if you took the trade continue to place your stop loss above the 10 day high which was touched earlier in the trading session at 101.01 on a closing basis only. The dollar is trading higher for the 7th consecutive trading session with very low volatility as we are hanging in there by the skin of our teeth as I’m also recommending a bullish Euro currency as the commodity markets are higher across the board today despite the strength in the dollar. Prices are trading above its 20 and 100 day moving average telling you the short term trend is higher, but I will continue to place the proper stop and if we are stopped out then look at other markets that are beginning to trend as the trends are coming back mostly to the upside.
Chart Structure: Excellent
Coffee futures in the March contract settled last Friday in New York at 148.70 a pound while currently trading at 147.90 basically unchanged for the week as I was recommending a bullish position last week getting stopped out taking the loss and moving on as the chart structure was excellent at the time. However, prices continue to drift lower. Coffee prices are trading right at their 20-day but still below their 100-day moving average which stands around 152 as I am still bullish coffee prices over the longer term, but when prices hit a 2 week low its time to move on & look at other trends that are beginning. At the current time, coffee is mixed to sideways. However, that doesn’t mean we won’t be involved relatively soon once again so keep a close eye on this market as this is a sleeping giant which is the largest commodity contract in the world as the risk is always higher in coffee than any other market. Growing conditions in the country of Brazil are currently ideal as certain dry pockets received substantial rain over the last week sending prices lower as its a long growing season and things can change on a dime as I remain bullish the entire commodity sector.
Chart Structure: Excellent