Mike Seery's Daily Commodity Report 10-11-17

11 Oct in Blog, Bonds, commodity consulting, commodity consulting commodities, commodity trading, corn, currencies, dow jones futures, futures, futures trading, heating oil futures, Mike Seery, NASDAQ 100 futures, natural gas futures, oats, option trading Crude oil futures, option trading S&P 500, seeryfutures, soybean meal, soybean oil, soybeans, unleaded gasoline futures, wheat

S&P 500 Futures--- The S&P 500 in the December contract is currently trading lower by 3 points at 2546 after hitting another all-time high in yesterdays trade & if your long a futures contract place the stop loss which now has been raised to 2504 as that will continue to climb on a daily basis as the chart structure will improve tremendously as the volatility still remains relatively low.

This is the classic demand market where retail investors continue to scoop up stocks regardless of bearish or bullish fundamental news as these type of markets can go on for a long period of time just like this one has as I'm certainly not recommending any type of bearish position as I still think higher prices are ahead as we enter the holiday months as October historically speaking is one of the worst months of the year, however 2017 continues to hit all-time highs as this trend is very strong to the upside.

The S&P 500 and all of the equity markets are trading above their 20 and 100 day moving average as excellent earnings continue to push prices higher coupled with the fact of improving worldwide economies including the United States with an unemployment rate of 4.2% so continue to stay long as who knows how high prices can go. In my opinion once the tax cuts are announced I think that will just add fuel to the fire to the upside as there is still a lot of room to run in my opinion.TREND: HIGHER–CHART STRUCTURE: IMPROVING

 

 

 

 

Cattle Futures--- Cattle prices have traded higher for 6 straight trading sessions right near a 3 month high settling up 187 points in yesterdays trade at 118.80 & as I've talked about in previous blogs if prices broke the critical 117.72 level that would be a bullish breakout to the upside, however I'm not involved as the 10 day low stands at 112.90 risking around $2,400 at this point which is too much in my opinion so I will wait for some type of price retracement therefore lowering the monetary risk.

The next major level of resistance is at the July 20th high of 119.85 and if that is broken you have to think that we will test the contract high which was hit on June 6th at 122.85 as this market does have momentum to the upside as prices are trading above their 20 and 100 day moving average telling you that the short-term trend is higher.

Prices in yesterdays trade filled the gap created on July 21st & as I have talked about many times I don't like gaps as they are generally filled as that was the case once again as it just took 3 months to do it, so keep a close eye on this market for a possible bullish position as I am certainly not recommending any type of bearish position as that would be counter trend trading which is dangerous over the course of time as trading with the path of least resistance is the more successful way to trade in my opinion.TREND: HIGHER–CHART STRUCTURE: POOR

 

 

 

 

Coffee Futures--- Coffee futures in the December contract are breaking a 4 day winning streak currently trading lower by 280 points at 128.15 a pound continuing its choppy trend as I'm currently not involved as I'm still looking at a possible bullish position in the we

eks ahead as I do think we are in the bottoming process. There is major support around 120/125 as we are starting to enter the volatile winter season for coffee as traders are keeping a close eye on the weather phenomenon known as La Niña which can cause droughts to the largest coffee producer in the world which is Brazil, but as of right now ideal weather conditions persist as there is very little news to push prices in either direction.

Coffee is trading slightly below its 20 & 100 day moving average trend as the trend is lower, however I will not take a short position as I think prices did bottom out around the 119 level on June 22nd as historically speaking prices still look very cheap as I'm still bullish the commodity markets in general as I think the giant bearish trends are over with that we experienced over the last several years.

Volatility in coffee has increased over the last couple of months as that is a good sign as this market can become unbelievably volatile with huge price swings on a daily basis as that is not what we are experiencing at the current time, however that will develop soon.TREND: MIXED---LOWER–CHART STRUCTURE: POOR

 

 

 

There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.

 

 

 

 

Corn Futures---Corn futures in the December contract are trading slightly lower for the 3rd consecutive session down 2 cents at 3.47 a bushel as traders are awaiting tomorrow's crop report with estimates of around 14.2 billion being produced in 2017 with an average of 170 bushels per acre as this market still remains on the defensive in my opinion.

Corn price are right near a 4 week low trading under their 20 and 100 day moving average as harvest is around 22% complete which is far behind the 5 year average of 37% due to some rain in recent days, but that should pick up rather quickly as I don't see any problems persisting for long periods of time.

Prices look to retest the August 31st low of 3.44 as that report tomorrow should send some volatility back into this market as the volatility at the current time is very low and that seasonally does occur during the month of October due to harvest as the large monetary funds are short 143,000 contracts as they are betting tomorrow's report will be bearish and that the trend will continue to the downside.

In my opinion I don't see much action for corn for the rest of 2017 but I do think 2018 there could be some light at the end of the tunnel to the upside, however look at other markets with a better monetary potential scenario.TREND: MIXED---LOWER–CHART STRUCTURE: EXCELLENT

 

 

 

 

Cocoa Futures--- Cocoa futures in the December contract are sharply higher this Wednesday afternoon in New York up for the 2nd consecutive session currently trading at 2113 up 66 points as I have been recommending a bullish position from the 2010 level while placing the stop loss under the 10 day low standing at 1968, however in Friday's trade that will be raised to 1984 as the chart structure will start improving on a daily basis.

I am looking at adding more contracts to the upside as adding to winners and getting out of the losers is the way to trade in my opinion, however I will wait for tomorrow's trade and if you have any questions please give me a call at any time.

Prices are trading above their 20 and 100 day moving average telling you that the trend is higher as the critical level is the 2100 area & if that is broken on a closing basis I think we can shoot up to 2200 rather quickly and as I've talked about in many previous blogs we are in the high demand season for chocolate as Halloween is right around the corner and Christmas is right around the bend so stay long and let's look at adding more contracts while maintaining the proper risk/reward scenario coupled with the fact of always risking 2% of your account balance on any given trade.TREND: HIGHER–CHART STRUCTURE: IMPROVING

 

 

 

 

Copper Futures--- Copper futures in the December contract are trading higher for the 3rd consecutive session up another 350 points trading at 3.0955 a pound hitting a 4 week high as the bullish trend continues to the upside in my opinion, however I'm not involved in this commodity as the 10 day low stands at 2.9260 risking around $4,300 per contract plus slippage & commission which is too high at the present time.

 

I will be keeping a close eye on this market for any type of retracement as I am bullish copper prices as I'm certainly not recommending any type of bearish position as I think prices will retest the September 5th high of 3.1785 in my opinion as I was commending a bullish position several months back as this has been the strongest trend in 2017 except for the equity markets.

Copper prices are trading above their 20 and 100 day moving average as the trend is higher, however the chart structure is poor, but it will start to improve in next week's trade especially if we have some price retracement as this market continues to follow the coattails of the stock market as the housing market in the United States is very strong therefore physical demand for copper is high so look at playing this to the upside.TREND: HIGHER–CHART STRUCTURE: POOR

 

 

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-312-224-8140 I will be more than happy to help you with your trading or visit www.seeryfutures.com

Skype Address: mseery TWITTER---@seeryfutures

FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER  

Email: mseery@seeryfutures.com

If you’re looking to open a Trading Account click on this link www.admis.com

 

 

 

There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.

Home  | Privacy Notice | Risk Disclosure | Contact Us

Trading Futures and Options on Futures transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Past performance is not necessarily indicative of future results.

Trading results obtained by a client while trading a demo account may not be indicative of the results obtained
when trading a live account due to the fact that trades are not sent to a regulated exchange but they are sent
to a simulated off-exchange server.

© 2014. Seery Futures. All Rights Reserved.