Advanced Knowledge & Tips by Pierre A Pienaar Weekly Futures Recap with Mike Seery
Dear Trader,We’ve asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weeklyrecap of the Futures market. He has been Senior Analyst for close to 15 years and hasextensive knowledge of all of the commodity and option markets.Michael frequently appears on multiple business networks including Bloomberg news,Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest onFirst Business, which is a national and internationally syndicated business show.Energy Futures--- The energy futures had a wild trading week with heating oil the bigstory after breaking out from 3.10 a gallon a couple weeks back hitting a 3 ½ monthhigh and as I had advised buying the 3 ½ month breakout to the upside now up another400 points today at 3.2425 in the March contract a gallon hitting an 11 month high uparound 800 points for the trading week due to the fact of a big storm hitting NewEngland. Crude oil futures were slightly lower this Friday afternoon down around $2 forthe trading week with major resistance at $98 and major support at $95 still stuck in asideways channel after consolidating after hitting 4 month highs and still trading aboveits 20 and 100 day moving average. Unleaded gasoline which is been the strongest inthe energy sector trading far above its 20 and 100 day moving average consolidating forthe week basically trading unchanged this Friday afternoon finishing up over 500 pointsstill at 1 year highs on the fact that demand around the world is increasing tremendouslypushing prices up as stock markets are also improving around the world increasingoptimism. In my opinion I have been bullish the energy sector as a whole and I stillcontinue to see higher prices but 1 commodity that makes me a little nervous isunleaded gasoline it might be due for a consolidation here for a couple of weeks beforemaking the next leg up, however I still think prices are going higher due to the fact thatwe are going to have huge Mideast tensions between Israel and Iran in the in the futurepushing prices up the levels we haven’t seen since 2008. If you’re looking to getinvolved in trading the energy sector which is very volatile an extremely risky and mightnot be suitable for every investor, however if you’re looking at purchasing calls or doingbull call spreads that limit your risk to what the premium costs therefore you can sleepat night which can be more suitable for some investors and smaller tradingaccounts. TREND: HIGHER –CHART STRUCTURE: EXCELLENTPrecious Metal Futures-- The precious metals were mixed this week with gold tradingin a very tight range basically finishing unchanged for the trading week 1, 671 an ouncein the April contract still trading below its 20 and 100 day moving averages whileremaining in a sideways pattern the last 6 weeks with major resistance in the Aprilcontract is at 1, 687 while major support is at 1, 653 and one of these days we willdevelop a trend and as I’ve stated in many previous blogs I am bullish gold and the rest
the precious metals but there really is no trend in sight. Silver futures are trading rightat its 20 day moving average but below its 100 day moving average which stands at32.47 an ounce after settling last Friday at 31.95 finishing down on the week by about$.50 with major resistance at 32.00 and major support at 30.78 this market is startingto consolidate over the last month or so and I am looking for a major breakout to theupside possibly getting back in the low 40s in the next couple of months in my opinion.Copper futures remain very strong due to the fact that the S&P 500 is hitting new 5 yearhighs again today showing continuing improvement while economies around the worldand the U.S housing market starting to move to the upside once again propping updemand for copper right near 4 month high with the next major resistance at 380 – 385continuing its bullish grind move higher with excellent chart structure. Platinum futuresare higher once again today in early trade only to sell off 5 dollars in the April contract at1, 716 hitting a new contract high for the week with concerns of possible shortagesthroughout the world causing possible spikes in prices during the year while palladiumprices are hitting new contract highs once again up about $3 at 752 continuing its bullishmarket on the fact that the car industry has bounced back tremendously which isspurring demand for platinum and palladium. As I’ve stated in many previous blogs I ambullish the entire sector so I’m advising traders to be long all of the precious metalsremembering always place a stop in case you are wrong trying to minimize yourmonetary losses and risk but at this point I still think the trends are higher and I thinkdemand is going to stay robust especially with easy monetary policies around the worldoccurring. TREND: HIGHER –CHART STRUCTURE: EXCELLENTOrange Juice Futures--- Orange juice futures in New York this week traded in anextremely tight trading range still right at 5 week highs trading higher by nearly 150points this Friday afternoon at 122.75 still trading above its 20 and 100 day movingaverage continuing its short-term bullish trend. Orange juice still has major support at110 and major resistance at this week’s high of 124 with chart structure improving on adaily basis settling last Friday at 121.75 basically up 200 points or around $300 profit orloss per contract for the trading week and in my opinion as I’ve written in previous blogsI do think that orange juice prices can move higher going into spring and the summermonths despite the fact that sugar and coffee which are both soft commodities hit new 2½ year lows today but it did not have any negative affect on orange juice prices thisweek. Harvest is showing good progress and we should have ample supply on themarket here in the short term but I believe that the market has already digested all thenegative fundamental news so we are possibly in a sideways to higher pattern in theshort term.TREND: HIGHER –CHART STRUCTURE: EXCELLENTCoffee Futures--- Coffee futures hit a fresh 2 1/2 year low this week and are now 40%from their highs that were just hit last year on 2/9/12 at 235.80 down for the 5thconsecutive trading session in early trade before rallying on the close to finish higher by
80 points at 141.65 after settling last Friday at 148 closing over 600 points lower for thetrading week. Coffee is still trading far below its 20 and 100 day moving average withexcellent chart structure allowing you place tight stops in case you are wrong on thetrade minimizing risk and at this point when contract lows are broken you have to thinkthat the trend will continue with the possibility of coffee prices going as low as 130 herein the next couple of weeks due to the fact of a large harvest in Central America andBrazil putting pressure on prices in the short term. The rumors of rust on the leaves andtrees in Central America possibly affecting 30% of the crop next year is not supportingthe price at this time because that is strictly speculation and it has not actually happenedso prices in the short term still look reasonably weak. I have been wrong on the coffeemarket because I thought we possibly bottomed in the last couple of weeks butsometimes you just have to admit you are wrong and you get out minimizing risk and atthis point the trend is to the downside. TREND: LOWER –CHART STRUCTURE:EXCELLENTSugar Futures-- Sugar futures in New York hit fresh 2 1/2 year lows once again todaycurrently trading at 18.10 down 5 points in a pretty lack luster Friday afternoon,however finishing lower by nearly 80 points for the week still far below its 20 and 100day moving average with excellent chart structure to the downside settling lower for the5th consecutive trading session. Coffee prices also hit 2 1/2 year lows today also puttingpressure on sugar prices because both crops are grown down in Brazil with an excellentharvest and ample supply coming onto the market continuing to put pressure on sugarprices in the short term and now you have to look back all the way to 2010 prices ofaround 15.25 a pound as the next major support. If sugar prices continue to go lowerand right now the trend is down and I never recommend buying new contract lowsbecause generally in my opinion contract lows will equal more contract lows in the futurebut if sugar prices get down to ridiculous levels like where we were in 2010 and if youare a longer term investor I would be scooping up prices down at those levels. TREND:LOWER –CHART STRUCTURE: EXCELLENTCotton Futures--- Cotton futures in New York were trading in a very narrow range thisFriday afternoon after settling last week at 82.98 down only 30 points in the last 5 daysbut still trading above its 20 and 100 day moving average really consolidating the lastrun-up in prices with 84.00 as the next major resistance. Cotton prices have beenrallying on the fact that there should be around 2 million less planted acres which will begoing to corn and soybeans, however it is too early as we are still in February to reallybe able to get reliable figures because come April is when you want to see the prices ofcorn and soybeans and cotton to dictate what you will plant and that is still severalmonths away and prices could move drastically in the next 60 days. Corn futures in therecent weeks have been going lower so you never know farmers what might plant morecotton if cotton is higher than corn at the time of planting season so at this point I still
think cotton is going higher but I think you could see a bearish consolidation of the mostrecent move with the trading range between 80 and 84 for several more weeks. TREND:HIGHER –CHART STRUCTURE: EXCELLENTWhat Does Risk Management Mean To You? I generally tell people that the reasonpeople lose money in commodities is not due to the fact that they are bad at predictingwhere prices are headed, however they are bad when it comes to losing trades andrefusing to take a loss which results for heavy monetary losses that are difficult to comeback from. For example if a customer has $100,000 account in my opinion on any giventrade he or she should risk 2% – 3% of the account value meaning if you are wrong theworst-case scenario is still a $97,000 remaining balance, however what I always see istraders risking ridiculous amounts of money and instead of the 3% stop loss will risk 20%to 30% on any given trade or even higher therefore if you are wrong on two or threetrades that $100,000 dollar account could dwindle down to nothing very quickly andI’ve seen it many times throughout my career. What many traders forget to realize isthey might have 4 or 5 commodity positions on and if you have too many contracts onall at the same time and all of those trades go against you which is very possible thelosses can add up to be staggering so what I am suggesting to you is if you have$100,000 account risk between $2,000 – $3,000 per trade so if you lose on five straighttrades the worst-case scenario is that your down $15,000 and still have an $85,000balance which is very possible to still come back from and your still in the game.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 orvisit www.seeryfutures.comThere is a substantial risk of loss in futures, futures option and forex trading.Furthermore, Seery Futures is not responsible for the accuracy of the informationcontained on linked sites. Trading futures and options is Not appropriate for everyinvestor.Michael Seery, PresidentSeery FuturesFacebook.com/seeryfuturesTwitter–@seeryfuturesPhone # (800) firstname.lastname@example.org
Source Ino.comYour Gateway to Global Options on Futures MarketsLong Leaf Xpress is well suited for the trader who wants quick execution on theelectronic markets. Traders have the ability to trade futures and options from a pricechart or an order ticket. Long Leaf Xpress also offers option chains, Depth of Market forfutures and options plus streaming real-time quotes and charts.Supported Instruments: Futures, Options on Futures.If you wish to have preferential treatment with your Futures Trading Account, pleasecontact Tony Klancic and refer to this report: Resources For The IndependentTrader Trade smart, not with Greed Pierre A PienaarPierre A Pienaar retired in 2011 from business.I would like to share my passion, my interests, knowledge & experiencesin Forex, Options, Gold Investments, Futures, Stocks, Binary Options, Economics,Stamp Collection, Sports, Gardening, Reading, Photography, Politics
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Substantial risk of lossThere is a substantial risk of loss in futures and forex trading. You should thereforecarefully consider whether such trading is suitable for you in light of your financialcondition. You should read, understand, and consider the Risk Disclosure Statement thatis provided by your broker before you consider trading.Online trading is risky. The risk of loss in online trading of stocks, options, and foreignequities is substantial.