Mike Seerys Weekly Gold and Silver Futures Recap

Our trading partner Michael Seery is back with his weekly recap of the Futures market. He has been a senior analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Gold futures in the June contract are closing down $18 this Friday afternoon to settle around 1,176 an ounce hitting a 5 week low as I’m now recommending a short position while placing your stop loss above the 10 day high which currently stands at 1,209 risking around $32 or $1,000 per mini contract plus slippage and commission as the chart structure is solid at the current time.

Gold futures finished down about $25 for the trading week as all the action is back into the S&P 500 which is hitting all time highs once again this Friday afternoon as money is coming out all precious metals and into the equity market and that trend is going to continue as I’m recommending a bullish position in the equities at the current time as well.

Gold futures are trading below their 20 and 100 day moving average telling you that the trend remains to the downside as the chart structure will not improve for another week or so but take advantage of any rallies as I think the risk/reward is your favor as the retest of 1,140 could be developing here in the next several weeks especially if the S&P 500 continues to move to the upside. The U.S dollar continues to consolidate its massive move to the upside and I think that will continue but I don’t see any reason to own gold at the current time.
Trend: Lower
Chart structure: Solid

Here's more calls from Mike on Oats. natural gas, coffee, corn, wheat, soybeans and more!

Silver futures in the July contract are down $.15 this Friday afternoon to close around 15.71 an ounce hitting a 5 week low as I have been recommending a short position when prices broke $16.00 and if you took that trade the chart structure has improved tremendously in the last several days so place your stop at 16.55 risking around $.80 or $800 per mini contract plus slippage and commission.

The next level of support in silver is 15.50 and if that’s broken in next week’s trade I would have to think that a longer term bear market would be in place so continue to play this to the downside as the risk/reward is in your favor in my opinion. Silver futures are trading below their 20 and 100 day moving average telling you that the trend is to the downside as it has the classic bear market trend grinding lower on a daily basis as I do think volatility will increase.

Volatility is still relatively low as silver and gold futures were down Friday afternoon also hitting a 5 month low as the precious metals remain weak as the U.S dollar is still hovering around an 11 year high as I think a secular bullish trend in the dollar will continue for quite some time so continue to play silver to the downside.

Silver futures on the daily chart may have created a longer term head and shoulders top but as a trader I want to focus on risk as the chart structure will not improve until later next week as I see no reason to own the precious metals as all the action is back into the stock market as prices are hitting all time highs again today.
Trend: Lower
Chart structure: Solid

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Here's Why Gold Will Be Priceless in Three to Five Years

Over the next few years as debt, currencies and countries start to fall apart and individuals will be looking to place their money where it will hold its value and buying power during times of extreme uncertainty.

If you eliminate fiat currencies which are created out of this air and are nothing more than a credit we are left with precious metals and stones. As much as we have evolved over time, we could be valuing things like gold, silver, platinum, and precious stones more so than our currency.

Let’s face it, currencies are swinging in value 20-50% regularly and while most people do not realize it their buying power often is not as strong as it was. Would you rather hold a large portion of your capital in say the EURO which is falling like a rock in value costing you thousands of dollars a month, or would gold and silver which rises in value as your currency falls be a smarter decision?

Click Here to Read Chris Vermeulen's entire article and charts





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