Weekly Gold and Silver Market Recap with Mike Seery for Week Ending Friday February 27th

It's time for our trading partner Mike Seery to give us his weekly call on commodities [including where to place your stops] and especially coffee and sugar. Mike has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Gold futures in the April contract are currently trading at 1,212 up around $3 an ounce while settling last Friday at 1,205 finishing up $7 in a relatively quiet trading week. Gold futures are trading below their 20 and 100 day moving average as I’ve talked about in many previous blogs I do think gold is now being used as a currency due to the fact that the Euro currency and many foreign currencies are absolutely falling out of bed as interest rates in many countries have gone negative so who wants to place money into a bank and lose money as investors are looking at gold which has no dividend but still it’s better than a negative return.

Volatility in many of the commodity markets is very high at the current time especially the precious metals and I expect that to continue despite the fact that the U.S dollar hit an 11 year high continuing its secular bull market in my opinion as I do think 100 is on its way in the next several months as the United States economy is doing much better than any economy worldwide. Gold futures have rallied from a contract low of 1,130 all the way up to about 1,310 in the last several months as I’m sitting on the sidelines waiting for better chart structure to develop as money is moving back into the S&P 500 sending prices to all time highs as I don’t see any reason to own gold despite all of the worldwide problems.
Trend: Lower
Chart Structure: Solid

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Silver futures in the May contract are up $.5 this Friday afternoon in New York currently trading at 16.66 an ounce settling last Friday at 16.32 finishing up about 40 cents for the trading week with extreme volatility so make sure that you use the proper amount of contracts risking only 2% of your account balance as I like to trade the mini contract which is $10 a cent versus $50 a cent on the large contract as high volatility has also entered the S&P 500 and the currency markets in recent weeks.

As I talked about in previous blogs I believe silver is now being used as a currency due to the fact that interest rates around the world are so low that investors are looking at silver as a currency replacing traditional paper currencies as nobody wants to own anything in Europe. Many of the commodity markets continue to head lower however silver remains choppy at the current time as I am still recommending investors to sit on the sidelines and wait for a trend to develop.
Trend: Mixed
Chart Structure: Solid


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Weekly Gold and Silver Futures Recap with Mike Seery

Our trading partner Mike Seery is out with his calls for this week and he includes some of reliable rules to protect our profits.

Gold futures in the February contract are slightly lower this Friday afternoon in New York after settling last Friday at 1,216 currently trading at 1,260 as I’m currently recommending a long futures position while placing your stop loss below the 10 day low which is around 1,209 risking around $50 or $1,650 on a mini contract plus slippage and commission. Gold futures are trading above their 20 and 100 day moving average hitting a 5 month high as the chart structure will also start to improve on a daily basis starting next week as the market has caught fire recently due to worldwide problems as money is pouring back into the precious metals and out of the S&P 500 in the beginning of 2015.

Yesterday the Swiss government announced they will let the Swiss Franc float rocketing that currency up while sending shock waves through the bond and currency markets and it certainly looks to me that problems are here to stay here for a while as Europe is a mess and this could push gold up to the next resistance level of 1,300 – 1,320 so take advantage of any price dip while maintaining the proper stop loss risking 2% of your account balance on any given trade as gold has finally turned into a short-term bull market once again.
Trend: Higher
Chart structure: Improving

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Silver futures are trading above their 20 day but right at their 100 day moving average settling last Friday at 16.12 while currently trading at 17.05 an ounce as I’m recommending a bullish position in silver while placing your stop below the 10 day low which is at 16.11 risking around $.90 or $4,500 per contract plus slippage and commission as the chart structure will also improve on a daily basis starting next week. The next major level of resistance is between 17.35 – 17.50 and if that level is broken I would have to think that silver prices have a chance to reach $20 here in the short term as once again money is flowing into the precious metals and out of the stock market for the 1st time in several years as investors are thinking that silver may have been overdone to the downside.

Many of the commodity markets continue to head lower as there is weak demand throughout many sectors due to the fact that the U.S dollar is at a 9 year high while silver & gold prices have also been in bearish trends until recently, however with what’s going on in France and Isis running havoc throughout the Mideast people are finally looking at the precious metals as a safe haven once again so the rest of the commodity markets can go lower with gold and silver still moving higher but play by the rules as the chart structure meets criteria in my opinion.
Trend: Higher
Chart structure: Improving

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