To continue with my futures blogs which are created to support any of you who care about financial, energy, metal, soft, grain and other futures markets, I would like to share with you the reviews on the energy and metal markets in this post as the promise of bringing you guys the best support in your futures trading.
First of all, we will have a look at the metal futures. According to the statistic, after the big sell off from $1,430 to $1,325 in the Gold market, precious metals hovered around unchanged as traders and investors took this opportunity to buy on the dip here as Gold closed around $1,355 per ounce. Gold stayed strong to the support at $1,320 and did not flush below this level Even when the USD gained against the Euro with the Ireland debt issue. And Silver also, it has stayed above the significant $23 level as prices hover around $26. Our metal expert - Pitguru Daniel Cronin - said: "I would look to try and get Gold on the cheap this week somewhere near the $1,320 level as I fell prices have much more of an upside than down on this market." From here, you can plan something for your investment and I hope that this is right for all.
There are banks and funds that have lifted their Gold predictions and some go as far as $1,650 “by next year as the Federal Reserve pledged this month to spend an extra $600 billion buying Treasuries, adding to trillions of dollars injected by central banks worldwide to inflate their economies out of the worst global recession since World War II.” Gold should be consolidating a bit here after the drop. The metal markets still keep changing and this may cause difficulties to you guys, but that's also the interesting points that make excellent investors
That's some information on the metal market that you can take note. Now, we will go next to stop by the energy futures home. If you care about this market, you can recognize that energies had a less than stellar week as Crude fell to $81.98 which was down 4.9% for the week in the January contract as Ireland's debt crisis moves into full swing in the Eurozone. As reported, “Energy prices also fell at the end of last week after China ordered banks to raise reserves in a move that may slow growth and crimp fuel demand in the world’s largest energy-consuming country.” However, WTI spreads rallied in the front as Jan/Feb - which is now the spot spread - rallied up to -59 and the Jan arb, which fell to -300 on Friday’s trade rallied up to -250 before the weekend set in as traders started to profit take on this from the short trade that occurred from -90 to -300. Note that, you can look for opportunities to sell on the rally in January somewhere above $83 to $84 as crude prices will likely gravitate toward the $80 level as the S&P continues its slide below 1200. Expert believes OTM Puts will be a nice play as the market looks to head lower as hedge funds cut their long bets on the price of crude oil futures. Just keep up with the market you trade, success will be not something strange to you any more.
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