The Week Ahead for June 24, 2019

S&P September 2019 Contract

This past week equity markets rose as the underlying S&P index climbed 2.20 %. Above, the September S&P futures contract rose 1.92% for the week. During this rally we were able to step-in for a quick day-trade on Tuesday and a 3.4% gain.

Moving forward we still believe bias remains strong, for a downward move and therefore, we are poised for a short-term downward move.

Light Sweet Crude August 2019 Contract

Oil made a big move this week on the back of tensions in the Middle East. The August contract, pictured above, was up 8.83% for the week. We are currently Long the August contract from $55.50.

Although, we believe the longer term trend in Oil is upward, it would not be surprising to see some consolidation occur this week. We will be looking to remain with our current trade, with an eye towards protecting our current open-profits.

Gold August Contract

It was an active week in the Gold market as the August contract, pictured above, moved up 4.14%. This move was in conjunction with a rise in world tensions. We entered three trades this week in gold with the first two being closed-out at break-even while the third resulted in a 7.5% gain.

We like the strength Gold has been showing recently and we are looking for continued strength in the week ahead.

Wheat September Contract

Agricultural futures were Flat to Lower this week as September Wheat, pictured above, was off -2.08% and November Soybeans climbed a very modest .42%. We were not active in these markets this past week.

Going forward next week, we are looking for further declines as the spring planting season gives way to the summer growing season.

Have a great week in the markets!

We Remain Long November Crude

This week the EIA (Energy Information Administration) reported 1.9 million barrels were added to supply which surprised the market who expected a draw-down in  supply.  Despite this, we remain Long November Crude as our expectations are that prices will continue their upward march, as the  Iranian sanctions soon take effect.

Oil Volatile Ahead of OPEC Meeting

It was a volatile session Thursday in the Crude market as the November contract reached new Highs of 71.35 before falling back and Closing at 70.32.    Much of this volatility is likely due to traders squaring positions ahead of this Sunday’s OPEC meeting in Algeria and the Baker Hughes rig count due out later today.

We continue to trade this market to the Long side.

Oil Stocks – Time To Get Back In

Oil Stocks – Time to Get Back In?

For the past six months the price of Brent Crude has quietly marched upward from $44 to over $60 which represents more than a 35% gain.

 

Despite these gains in the underlying commodity, oil-based stocks have been slower to recover from their recent collapse, however some oil stocks have begun to show signs of strength.

One such stock is Enbridge (ENB-T) on the Toronto Stock Exchange (TSX) which has been showing signs of strength since November.

If ENB-T can maintain its current trend line and break above resistance @ $52 I will be a buyer.