Mike Seery's Daily Commodity Report 10-30-17

30 Oct in Blog, Bonds, commodities, commodity consulting, commodity trading, corn, currencies, dow jones futures, futures, futures trading, heating oil futures, Mike Seery, NASDAQ 100 futures, natural gas futures, oats, option trading Crude oil futures, option trading S&P 500, seeryfutures, soybean meal, soybean oil, soybeans, unleaded gasoline futures, wheat

Gold Futures--- Gold futures in the December contract are unchanged to start out the week at 1,272 an ounce in a very quiet trade as prices still look to retest the October 6th low of 1,262 & if that is broken I think we will head down to the 1,250 area in the coming days ahead as the U.S dollar is down around 30 points in today's trade, but still right near a 3 month high putting pressure on all of the metals recently.

Gold prices remain on the defensive due to the fact that the U.S stock market continues to hit all-time highs as the GDP was announced last week hitting 3% for the 1st time in 9 years which is a positive economic indicator as growth has come back into the United States, however that is a negative towards gold prices and if the 1,250 level is broken prices look to retest the July 10th low of 1,211 as I see no reason to own gold at the present time.

Gold futures are trading under their 20 and 100 day moving average telling you that the short-term trend is lower as silver prices are mirroring gold to the downside as well, but I'm advising clients to avoid this market as the chart structure & the risk/reward are not in your favor as I am not advising any type of bullish position as I think the remainder of 2017 gold prices continue to remain choppy.TREND: LOWER–CHART STRUCTURE: POOR

 

 

 

 

S&P 500 Futures--- The S&P 500 in the December contract is currently trading lower by 6 points in early trade in Chicago at 2572 retracing some of the sharp gains we saw last Friday as prices hit another all-time high as record earnings out of the tech sector such as Amazon, Google, and Microsoft continue to push up equity prices in 2017.

One main catalyst for higher stock prices was the GDP number which came out last week stating that we grew by 3% which was the first time that occurred in 9 years as that shows you that growth has come back into the United States and I do think that number will even increase in the reports ahead especially if we get the tax cuts that are expected before 2017 ends.

If you are long a futures contract place the stop loss under 2542 which basically was a double bottom that was hit twice in the last couple of weeks as the chart structure is solid at the present time as I still see higher prices ahead as I'm certainly not recommending any type of bearish position as this trend clearly is very strong to the upside. Traders are anticipating strong earnings reports this week as well as fundamentally speaking the stock market at the present time has everything going for it as I still think the 2600 level will be breached possibly in this week's trade.TREND: HIGHER–CHART STRUCTURE: SOLID

 

 

 

 

 

Coffee Futures--- Coffee futures in the December contract currently are lower by 50 points at 126.10 a pound in a quiet trade this Monday in New York as prices are still right near a 2 week high as I'm still sitting on the sidelines waiting for a breakout to occur to the upside which could possibly happen in the next week or two.

Coffee prices are trading slightly above their 20 day but below their 100 day moving average which is also the 4 week high around the 132.30 area as I think that will be tested in the days ahead so keep a close eye on this market as the 123.00 level has held on multiple occasions as I still think prices are bottoming out.

At the current time I have 2 soft commodity recommendations which are in cocoa and sugar, but coffee prices remain choppy to sideways at the present time, but the volatility should start to increase as we enter the winter months as traders are keeping a close eye on the weather conditions in the country of Brazil and if a weather problem does occur you will see higher prices quickly to the upside like we witnessed in 2014.

Historically speaking I think coffee prices are relatively cheap down at these levels and as I've talked about in many previous blogs I will not take a short position as I think the path of least resistance will be to the upside.TREND: MIXED–CHART STRUCTURE: IMPROVING

 

 

 

 

Sugar Futures---Sugar futures in the March contract is trading higher for the 2nd consecutive session as I have been recommending a bullish position from last Friday from around the 14.57 level & if you took the trade place the stop loss under the 10 day low standing at 13.84 as the risk is around $800 per contract plus slippage and commission as the chart structure is excellent at the present time.

Sugar prices are trading above their 20 and 100 day moving average as the trend is to the upside as we have broken out of a 5 week consolidation as the 14.00 level held on multiple occasions as sugar is starting to follow crude oil which is also hitting another high in today's trade.

The next major level of resistance is the September 15th high of 15.20 & if that is broken I think there is room to the upside near the 17 level so continue to play this higher and if you're not involved wait for some type of price retracement before entering as I think prices have bottomed out.TREND: HIGHER–CHART STRUCTURE: EXCELLENT

 

 

 

There is a substantial risk of loss in futures and futures options. 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.

 

 

 

 

Cattle Futures---Cattle futures in the December contract are limit up 300 points currently trading at 123.82 higher for the 3rd consecutive session hitting a fresh contract high breaking the June 6th high of 122.85 as higher prices look to be ahead in my opinion.

 

I am not involved in cattle, however as I wrote about in my previous blog I was certainly not recommending any type of bearish position as the trend clearly is to the upside as I think there's a possibility we could trade up to the 130 level in the coming weeks ahead as the strong demand holiday season is upon us.

Cattle prices are trading are above their 20 and 100 day moving average as the trend clearly is higher as my only concern is that there is a price gap on the daily chart that was created today & if you read any of my previous blogs you understand that I don't like gaps as they are generally filled, however there is a lot of strength in this market at present time as I think in tomorrows trade prices will also be higher.

 

Feeder cattle prices are sharply higher as well up another 350 points hitting a contract high as that market also looks very strong as I think we could be trading as high as 170 in the coming weeks ahead as cheap grain prices continue to support the cattle sector at the present time.TREND: HIGHER–CHART STRUCTURE: POOR

 

 

 

 

Cocoa Futures---Cocoa futures in the December contract are unchanged this Monday afternoon in New York currently trading at 2104 in a very nonvolatile trading session as I've been recommending a bullish position over the last 6 weeks from around the 2010 level and then recommended to add another position around the 2145 area & if you took those trades the stop loss now has been raised to 2062 which is only about 40 points away as the chart structure is outstanding at the present time.

Volatility in cocoa is very low at the present time and that's why the chart structure is excellent as we are struggling to crack the October 25th high of 2148 which needs to be broken for this trend to continue to the upside as I'm also recommending a sugar position at the present time as these my only 2 trades in the soft commodity sector.

Cocoa prices are still trading above their 20 and 100 day moving average as the trend is higher as I will be looking at adding another contract if the 2148 level is broken due to the fact that the risk/reward are still in your favor because the stop loss is so tight so keep a close eye on this market in tomorrows trade.TREND: HIGHER–CHART STRUCTURE: EXCELLENT

 

 

 

 

10 Year Note Futures---The 10 year note futures in the December contract is currently yielding 2.40% right near a 6 month high as the futures contract is higher for the 2nd consecutive session up another 12/30 seconds at 125/00 still right near a 6 month low as the futures and the yields go in opposite directions.

 

At the present time I'm not involved in this market, but I'm certainly bearish meaning that I think yields are going higher while the futures contract is headed lower as all the interest lies in the stock market at the present time as I see no reason why the yield is this low on the 10 year notes as higher interest rates are ahead in my opinion. Interest rates have been extremely low since the crash of 2008 and the quantitative easing that was initiated during the Obama administration has come to an end as the fixing of low interest rates era is over with in my opinion.

The natural market should come back into play as I still think the 10 year note over the next several months could trade over the 3.00% level unless some type of geopolitical event such as a war with North Korea develops, however the trend is to the downside at the present time despite today's rally.TREND: LOWER–CHART STRUCTURE: SOLID

 

 

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-312-224-8140 I will be more than happy to help you with your trading or visit www.seeryfutures.com

Skype Address: mseery TWITTER---@seeryfutures

FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER  

Email: mseery@seeryfutures.com

If you’re looking to open a Trading Account click on this link www.admis.com

 

 

 

There is a substantial risk of loss in futures and futures options. 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.

Home  | Privacy Notice | Risk Disclosure | Contact Us

Trading Futures and Options on Futures transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Past performance is not necessarily indicative of future results.

Trading results obtained by a client while trading a demo account may not be indicative of the results obtained
when trading a live account due to the fact that trades are not sent to a regulated exchange but they are sent
to a simulated off-exchange server.

© 2017. Seery Futures. All Rights Reserved.