Mike Seery’s Daily Commodity Comments For 8-5-20

Mike Seery’s Daily Commodity Comments For 8-5-20
Mike Seery’s Daily Commodity Comments For 8-5-20

Platinum Futures—Platinum futures in the October contract is trading higher for the 4th consecutive session up another $43 at 998 an ounce hitting a 6 month high as the precious metals sector is on fire in today’s trade.

I have been recommending a bullish position from around the 868 level and if you took that trade continue to place the stop loss under the 10-day low which stands at 894 as an exit strategy, however the chart structure will not improve for another 6 trading sessions so you will have to accept the monetary risk at this time. In my opinion I believe prices will break the January 16th contract high of 1,055 in the coming days ahead as historically speaking prices still look cheap in my opinion.

Platinum prices are trading far above their 20 & 100 day moving average as this trend is strong to the upside as gold prices also hit all-time highs in today’s trade as I’m also recommending a bullish silver position which is up another $1.00 hitting a 7-year high as the stimulus packages from the Federal Reserve are certainly helping propel the precious metals sector higher.  I will not add any more positions to silver or platinum as the volatility is too high so stick with the original trade as I still think higher prices are ahead. 

TREND:HIGHER

CHART STRUCTURE: SOLID

VOLATILITY: HIGH

 

 

 

Silver Futures—I sound like a broken record as silver prices are trading higher for the 4th consecutive session up another $0.57 at 26.60 an ounce and traded as high as 27.25 earlier before profit-taking came about.

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 the stop loss under the 10-day low standing at 22.46 as an exit strategy, however the chart structure will not improve for another 6 trading sessions so you will have to accept the monetary risk at this time. The U.S dollar is sharply lower this Wednesday afternoon in New York down another 75 points hitting a 2 year low which is a bullish fundamental factor for all commodities in my opinion as I still think prices will touch the 30 level in the coming weeks ahead.

At the present time I also have a bullish platinum trade which cracked the $1.000 level as the entire sector continues its torrid pace to the upside as gold prices also hit another all-time high as I see no reason to be short. Silver prices are trading far above their 20 &100 telling you that the trend is to the upside as the volatility is going to explode in the next several weeks in my opinion so make sure you place the proper amount of contract while risking 2% of your account balance at any given trade as the proper money management technique. 

TREND:HIGHER

CHART STRUCTURE: SOLID

VOLATILITY: HIGH

 

 

Sugar Futures—Sugar futures in the October contract settled lower by 24 points at 12.54 a pound breaking a 5 day winning streak blamed on profit taking as prices are still right near a 5 month high.

I have been recommending a bullish position from around the 12.61 level and if you took that trade continue to place the stop-loss at 11.48 as an exit strategy, however the chart structure will improve next week therefor the monetary risk will be reduced. Sugar prices are trading above their 20 and 100 day moving average as the trend remains to the upside as volatility still remains low and I don’t think that situation is going to last much longer so continue to play this to the upside in my opinion.

Crude oil prices continue their bullish trend hitting $42 a barrel today as that’s a supportive fundamental factor for sugar as this commodity is used as a biodiesel as I think a multi year bottom has formed. The U.S dollar was down another 75 points hitting a 2 year low which helps agricultural exports therefore pushing prices higher. 

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: AVERAGE

 

 

 

 

S&P 500 Futures–The S&P 500 in the September contract is trading higher for the 4th consecutive session up another 20 points at 3320 continuing its bullish momentum as prices filled the downward gap that was created on February 24th in today’s trade.

At the present time you are witnessing a melt up in price as people are chasing the market at the current time afraid that they will miss another leg higher. If you have been following any of my previous blogs you understand that I have been bullish on the equity market for quite some time and I do believe prices will break the all-time high that was hit on February 28th at 3396 in the next couple of weeks.

The S&P 500 is trading far above its  20 and 100 day moving average as this trend is strong to the upside as fundamentally speaking this market has everything going for it as the Federal Reserve will continue to pump money into the economy therefor supporting the precious metals and stock prices and that’s exactly what we are witnessing at this time.

If you are long a futures contract I would place the stop loss under the 2 week low standing at 3192 as an exit strategy as we await this Friday’s monthly unemployment number which should dictate short-term price action. 

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: HIGH

 

 

 

Gold Futures—Gold futures in the December contract finished up another $31 at 2050 an ounce hitting another all-time high as this market has caught fire over the last couple of weeks and looks to move even higher in my opinion.

If you have been following my previous blogs you understand that I have been bullish on the entire precious metal sector, however I’m not involved in gold, but I do believe higher prices are ahead as I’m certainly not recommending any type of bearish position.

At the present time I do have bullish recommendations in platinum and silver as the U.S dollar continues to head lower on a weekly basis as that is supporting the precious metals across the board so stay bullish if you are long a futures contract.

The chart structure at the current time is poor as the 10-day low stands at 1,908 as an exit strategy ,however everybody’s trading account has a different story so make sure that it is appropriate for your situation on where to place the stop. Gold is trading far above its 20 and 100 day moving average as this trend is very strong to the upside as I still do not see a top formation pattern developed yet as strong demand continues to push prices higher.

TREND:HIGHER

CHART STRUCTURE: POOR

VOLATILITY: HIGH

 

 

 

Natural Gas Futures—Natural gas futures in the September contract is trading higher for the 3rd consecutive session up 2 points at 2.21 in a relatively quiet trade, however prices have hit a 3 month high. At the current time I am not involved, but it does look to me that a long-term bottom has been formed as I’m looking at some type of price pull back before entering into a bullish position therefor lowering the monetary risk.

The chart structure is terrible at the current time due to the fact that prices have run up from the 1.80 level in just a matter of days so I will be patient, however I’m certainly not recommending any type of bearish position as I do think higher prices are ahead.

At the current time I believe natural gas is experiencing an overbought condition and is due for some type of retracement, but the trend certainly has turned to the upside as prices are trading above their 20 and 100 day moving average so keep a close eye on this market as we could be involved soon.

Many commodities are starting to experience higher volatility including natural gas as we have rallied about 20% in 4 days, however you have to think historically speaking prices still look cheap. 

TREND:HIGHER

CHART STRUCTURE: POOR

VOLATILITY: HIGH

 

 

 

Live Cattle Futures—Cattle futures in the October contract settled lower for the 2nd consecutive session down only 2 points at 107.45 in a relatively quiet trade this Wednesday afternoon in Chicago as prices are still right at a 5 month high.

Originally I had been recommending a bullish position in the August contract from around the 99.80 level while then rolling over into the October contract around the 106.50 level and if you took that trade continue to place the stop loss under the 10-day low which stands at 103.65 as an exit strategy.

At the present time the volatility is relatively low as historically speaking this is one of the most volatile commodities out of all sectors as I think that will come back to fruition in the coming weeks ahead. Fundamentally speaking weak demand has continued to depress prices over the last couple of years, but I still think that the 110 level could be in the cards in the coming weeks ahead so stay long and continue to place the proper stop loss.

The U.S dollar hit a 2 year low today as that is a bullish fundamental factor towards the livestock sector including cattle as I will be looking at adding more contracts once the stop-loss is raised. 

TREND:HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: AVERAGE

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com 

 

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 Email: mseery@seeryfutures.com

 

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