Michael Seery's Daily Newsletter 1-800-615-7649 www.seeryfutures.com

in Seery Futures Exclusive Newsletter

Precious Metal Futures—The precious metals in New York this morning sold off again after yesterday’s sharp sell off with gold lower by $3 an ounce to trade at 1, 667 trading far below its 20 and 100 day moving average hitting a fresh 4 month low and in my opinion this looks like a bear market could be underway. Silver futures are also sharply lower down around $.45 an ounce down sharply for the 2nd consecutive trading session currently trading in the March contract at 31.23  at a fresh 4 week low with major support around 30.80 and if that level is breached you are looking also a fresh 4 month lows as traders are booking end-of-the-year profits. Copper futures have are sharply lower in sympathy with the other precious metals lower by 400 points this afternoon still right near recent highs trading at 3.62 a pound on renewed optimism that President Obama is trying to pass a $50 billion stimulus package for the construction industry which is keeping copper prices relatively strong compared to the rest of the metals. In recent weeks I have seen some strange things in the commodity markets but one of the strangest is the fact that the Euro currency is up another 70 points today breaking out to a new 8 month highs at 1.3305 which is generally very bullish the stock market and the commodity markets but the only thing rallying is the stock market up sharply once again on renewed optimism that the fiscal cliff will be resolved in a couple of days , however a lower dollar at this point is not helping out the precious metals and I still do believe that these are buying opportunities in gold and silver in my opinion. If the dollar continues to go lower of eventually investors are going to come into the silver and gold market but at this point before the New Year they are taking profits. Palladium futures for the March contract are up 100 points this afternoon trading at 691.40 also right near contract highs which were struck in yesterday’s trade which also tells you that there is demand for these products. TREND: LOWER –CHART STRUCTURE: EXCELLENT

 

Double Bottom & Double Tops---This indicator is one of my favorite patterns that signals a trend reversal because its considered to be one of the most reliable and is commonly used by many technicians. These patterns are formed after a sustained trend and signal to chartists that the trend is about to reverse. The pattern is created when a price movement tests support or resistance levels twice and is unable to break through. This pattern is often used to signal intermediate and long-term trend reversals. Their also can be triple bottoms and triple tops which are in my opinion an excellent indicator that predicts bottoms and tops at a relatively high rate and if you look at some of the daily charts you will see some double and triple tops and bottoms. If you are using any indicator such as these make sure you place a stop loss to try and minimize your monetary loss because indicators do not work a 100 % percent of the time so you still need solid money management technique to cut loses. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading or visit www.seeryfutures.com

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.

Cocoa Futures--- Cocoa futures are lower this morning in New York currently trading down by 44 points at 2354 right near session lows reversing what could have possibly been a head and shoulders bottom now focusing on the contract low which happened on November 9th at 2322 and if that level is broken you would have to think that a bearish trend is in sight. Remember when you trade commodities you will be wrong sometimes so you must put a stop loss and not marry your position because never getting out causes exaggerated monetary losses so always risk between 1-2% of your account balance on any given trade trying to minimize risk. Cocoa has been in a sideways channel for about 6 months really with a directionless trade but at this point it will be interesting to see if the contract lows are broken but if not maybe we can get some consolidation and a real breakout occurs. Many of the soft commodities are lower today including sugar, cotton, coffee, and cocoa futures with a slightly lower stock market this morning. The U.S dollar is lower for the 8th straight day against the Euro currency which is up another 25 points, however the fact that the dollar continues to make new lows is not helping push the soft commodities higher at this point in time. TREND: LOWER –CHART STRUCTURE: EXCELLENT

Grain Futures--- Corn futures in Chicago have broken major support hitting a fresh 4 month low currently trading in the March contract at 7.03 down another $.16 as I’ve stated in many previous blogs I have been bearish the wheat and corn and I do believe at this point that corn has entered a bear market and I’m advising traders to be short this market placing a stop loss above the 10 day high in case you are wrong minimizing monetary losses. Wheat futures for the March contract are slightly lower continuing their bearish momentum at 8.06 a bushel down only $.05 and what I think will break the $8 level which is the next major support possibly today or later in the week do ample supplies and slowing demand across the board. With the grain market sharply lower across the board today that is also pressuring soybeans  down another $.30 trading lower for the 3rd consecutive trading session reversing some of last week’s gains currently trading at 14.32 still stuck in a sideways channel as I’ve stated in many previous blogs I was bullish the soybeans and bearish corn and wheat, however at this point in time it looks to me that the grain market is headed lower and I would stay short the corn and wheat and be neutral the soybeans . The U.S dollar is lower against the Euro currency for the 8th consecutive trading day ,however it is having very little impact on the grain prices as traders still see prices too high as the weather in South America has been excellent and it looks like  we are going to have solid crops in Brazil and in Argentina which is pressuring the grain market, however the real important part of the growing season in South America is in January so things can turn on a dime just like they did here in the United States last summer in Mid-June.  The trend is your friend in commodity markets and right now the trend in corn and wheat are sharply lower and in my opinion I think you will continue to see these prices head down in the coming weeks. Several days ago China canceled on a large shipment of soybeans and that is what has pressured this commodity in the last several days, however I have seen this game played by the Chinese many times in the past where they will cancel a shipment and then 45 days later after the price declines then re purchase, but time will tell to see if the same games are being played but at this point in time the grain market has turned bearish in my opinion. TREND: LOWER –CHART STRUCTURE: EXCELLENT

Energy Futures-- The energy futures in New York today rallied sharply across the board today with crude oil in the February contract up $1.71 currently trading at 90.10 trading above 20 but below its 100 day moving average which stands at 91.84 which isn’t too far away from today’s trading levels. Crude oil has been up 4 consecutive trading days looking to breakout to recent high which happened on December 3rd at 90.90 and if those levels are broken look for a possible retest of $100 dollars a barrel in the coming months all due to the fact that economies around the world are starting to come back with stock markets climbing which is beneficial for crude oil and its products. If you look at crude oil on the daily chart it looks like it’s got a nice rounding bottom with excellent chart structure allowing you to place a stop with relatively low risk due to the fact that volatility has been pretty quiet even though today was a very solid up day up around 2%. Unleaded gasoline futures are up another 530 points trading at 2.7377 far above its 20 and 100 day moving average with the next major resistance at 2.76 and if that level is broken you are looking at an 8 week high and possibly a bull market in crude oil and gasoline once again going into the winter season. Heating oil futures which just recently hit a 4 month low and now it looks like to be a false breakout to the downside and now trading above its 20 day moving average still below its 100 day moving average trading higher today by 380 points at 3.0318 a gallon and by far has been the weakest component lately in the energy sector and at this point it looks to me that gasoline and crude oil are headed higher in my opinion. The U.S dollar was lower against the Euro currency for the 8th consecutive trading day which is propping up energy prices, however the precious metals and the grain market have fallen pretty drastically in the last couple of days but it has not affected crude oil and its products which tells you that there could be some real strength behind this rally. In my opinion I still believe that we will have a conflict with Iran in the next several months which will prop up prices dramatically because of the fact that we will not allow them to get a nuclear bomb and it would surprise me quite a bit if there wasn’t a preemptive strike in the next 3 to 6 months. TREND: HIGHER –CHART STRUCTURE: EXCELLENT

Orange Juice--- Orange juice futures were higher today for the 7th straight trading session in New York once again continuing its bullish momentum finishing up another 200 points at 142.00 in the March contract and traded as high as 144.50 in early trade hitting an 8 month high again trading far above its 20 and 100 day moving average remembering that the trend is your friend in the commodity markets on renewed optimism about demand and traders are placing the frost premium in the price at this point just in case of crop damage this winter. Orange juice futures are higher this past week on double the average volume which tells you this bullish move has legs and could head higher and as I’ve stated in many previous blogs I do believe that orange juice could head back up to the 170 – 200 level where we were just 1 year ago remembering the tremendous selloff that occurred last summer and then sideways action for many months and now are starting to breakout to the upside and if there is a winter frost in Florida prices could shoot up very quickly to the upside. The next major resistance in the March orange juice contract is 145 – 150 and if those levels are breached I suspect a big run possibly up to the 200 level by mid-January in my opinion. TREND: HIGHER–CHART STRUCTURE: EXCELLENT If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading or visit www.seeryfutures.com

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.

 

 

 

 

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