Weekly Futures Recap With Mike Seery - SP500, Platinum, Palladium, Corn and More

Let's check in with our trading partner Michael Seery to see what is saying as he gives us a recap of last week's [ending Friday October 18th, 2019] commodities futures markets and give us some insight on where he sees the markets headed in the coming week.

The SP500 futures in the December contract settled last Friday in Chicago at 2970 while currently trading at 2993 up about 23 points for the week as this market looks to move higher, in my opinion, however,

I'm currently not involved. The S&P is trading above its 20, and 100 day moving average as the trend has turned higher. However, the chart structure is poor at the current time. Therefore, the risk/reward is not in your favor. Still, I am not recommending any short position as I do think going into the holiday season prices will hit all time highs.

We are in the midst of earnings season as that will undoubtedly dictate short-term price action, and so far, the earnings have been very solid as the U.S economy by far is the best in the world. If you take a look at the daily chart, there is major resistance at the 3000 level, and if we can close above that area, I think prices could be off to the races as extremely low interest rates are also helping to support stock prices at this time.

Trend: Higher
Chart Structure: Poor
Volatility: Average

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Platinum futures in the January contract settled last Friday in New York at $900 an ounce currently trading at 892 down about $8 for the trading week as prices are stuck in a three week consolidation pattern. Platinum prices are trading below their 20 day but still above their 100 day moving average as the trend is mixed. However, historically speaking, prices look very cheap, in my opinion, especially compared to gold, as I will be looking at a bullish position if prices hit a four week high as I think the downside is very limited.

Volatility at the current time is relatively low as prices remain mixed to choppy, so keep a close eye on this market as we could be involved in the coming days ahead. Platinum prices have sold off about 10% from their August highs, and I still think we will crack that $1,000 level once again. But be patient as trading in a consolidation is very difficult to be successful. You want to trade with the trend, so look at other markets that are breaking out at the current time as I have multiple bullish recommendations.

Trend: Mixed
Chart Structure: Excellent
Volatility: Low

Palladium futures in the December contract settled last Friday at 1,670 while currently trading at 1,725 up about $55 for the trading week hitting another all time high as this commodity has the strongest trend out of all sectors. If you are long a futures contract, continue to place the stop loss under the 10 day low standing at 1,605. However, next Tuesday, that will be raised to 1,630 as the chart structure will start to improve daily, therefore, lowering the monetary risk.

If you have been following my previous blogs, you understand that I think there is a realistic chance prices could hit 2,000 in the coming weeks ahead as strong demand and limited supplies continue to push prices higher as I see no reason to be short. Palladium prices are trading above their 20 and 100 day moving average as the trend is strong to the upside as the volatility will remain high for months to come.

For the bullish momentum to continue, prices have to break the October 17th high of 1,750 as this is the perfect example of why you trade with the trend as going with the path of least resistance is the most successful way to trade in my opinion.

Trend: Higher
Chart Structure: Improving
Volatility: High

Make sure to read Chris Vermeulen's Latest Article "Lots of Upside Ahead for the Metals and Miners"....Right Here

Corn futures in the December contract settled last Friday in Chicago at 3.97 a bushel while currently trading at 3.92 down about 5 cents for the trading week looking for some fresh fundamental news to dictate short term price action. I have been recommending a bullish position from the 3.80 level, and if you took that trade, continue to place the stop loss under the October 10th low of 3.78% as an exit strategy as the chart structure is outstanding due to the low volatility.

Corn prices are trading above their 20 day but still below their 100 day moving average, which stands at major resistance at 4.07, and if you take a look at the daily chart, the uptrend line remains intact as I remain bullish. Heavy snow has entered certain parts of the Midwest, which could hurt production numbers.

Still, we will not find out until the next crop report, which will be released in the second week of November as I also have bullish recommendations in wheat and soybean meal as I think the commodity markets are headed higher. For the bullish momentum to continue prices, have to break the October 14th high of 4.02, and if that situation occurs, then prices could head up to the 4.25 level.

Trend: Higher
Chart Structure: Excellent
Volatility: Low

For more calls on this week's commodity trades like Cotton, Wheat, Soybean Meal and more....Just Click Here!

Mike Seery has been a senior analyst for over 15 years and has extensive knowledge of all of the commodity and option markets.

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