August is officially in the books, and other than Platinum rising $100 from $885 to $985, there was little to get excited about. Precious Metals were flat, where hot economic data and a hawkish Federal Reserve supported the U.S. Dollar and Treasury Yields, further pressuring prices. As the month went on, softer prints from Consumer Confidence, ADP, GDP, and Jolts data cast doubts on the Fed's ability to maintain its hawkish stance. The September FOMC meeting now sits at a 93% chance that the Fed will leave interest rates unchanged.
Chinese Stimulus
China made another attempt to support its economy overnight by cutting the reserve requirements on foreign currencies. The immediate reaction was a breakout in Copper prices and a retest of the 200-day moving average. Still, as the day session progressed, better-than-expected employment data left traders uneasy ahead of the long weekend, booking gains in Copper and reducing exposure in Precious Metals.
Silver is stuck in a Trading Range
Silver futures started the week on a firmer note but fell back as the week progressed and look susceptible to a more extensive correction next week. In the last article, I indicated that breakout traders will use a close above $24.75 to establish new long positions. However, the lack of upside momentum makes me question the strength of this "bull market." Those long Silver will want to use $23.79 as their stop-out point or short-dated put options such as the "week two, $24.50 puts" for protection.
Remember, prices remain trapped between $23-22 on the downside and $26-25 on the upside and lack a real catalyst to trade any higher. For those of you who are "perma bulls" on Silver, it would be wise to wait for a correction before adding to positions.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Chinese Stimulus
China made another attempt to support its economy overnight by cutting the reserve requirements on foreign currencies. The immediate reaction was a breakout in Copper prices and a retest of the 200-day moving average. Still, as the day session progressed, better-than-expected employment data left traders uneasy ahead of the long weekend, booking gains in Copper and reducing exposure in Precious Metals.
Silver is stuck in a Trading Range
Silver futures started the week on a firmer note but fell back as the week progressed and look susceptible to a more extensive correction next week. In the last article, I indicated that breakout traders will use a close above $24.75 to establish new long positions. However, the lack of upside momentum makes me question the strength of this "bull market." Those long Silver will want to use $23.79 as their stop-out point or short-dated put options such as the "week two, $24.50 puts" for protection.
Remember, prices remain trapped between $23-22 on the downside and $26-25 on the upside and lack a real catalyst to trade any higher. For those of you who are "perma bulls" on Silver, it would be wise to wait for a correction before adding to positions.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.