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  Wednesday, 19 Jun 2013 | 9:23 AM ET

The Pre-Fed S&P Trade

Posted By: Rich Ilczyszyn
NYSE traders floor
Getty Images
NYSE traders floor

The market is firing a buy signal, but a lot will ride on what Fed Chairman Ben Bernanke announces Wednesday afternoon.

The technical setup for a higher S&P looks good. Equities continued to trade higher, with the S&P closing above the 1,349 to 1,351 resistance in the June contract, but just below the 1,355 breakout level. We will now be using the September contract, which trades roughly 6 points lower than the June contract, and traded up to 1,648.75.

Wednesday's high is 1,649, as this aligns with the 1,655 line in the sand from the June contract. The market will likely stay quiet into the 2 p.m. EDT Federal Open Market Committee statement, and Bernanke's 2:30 p.m. news conference.

(Read More: Fed Likely to Keep Options Open on Bond Buying)

»Read more
  Tuesday, 18 Jun 2013 | 2:56 PM ET

Ron Paul: Gold Could Go to 'Infinity'

Posted By: Alex Rosenberg

There are gold bears, gold bulls, and gold bugs. And then there's Ron Paul.

The former congressman and presidential candidate is known for favoring gold, and he still believes it will go higher. How much higher?

"Eventually, if we're not carefully, it will go to infinity, because the dollar will collapse totally," Paul said on CNBC.com's "Futures Now."

A gold price of "infinity" might be hard to conceptualize, but Paul's point is actually quite simple.

He believes that "as long as we have excessive spending, and excessive computerized money, we are going to see gold go up," because the value of the dollar will be driven down. As each dollar becomes less valuable, it takes more of them to purchase an ounce of gold, meaning that the gold price measured in dollars rises.

Paul then takes it one step further. If Washington spending and Federal Reserve easing he refers to ends up toppling the U.S. economy and makes the dollar worthless, then no amount of dollars will allow an individual to purchase an ounce of gold. In that nightmare scenario, the price of gold (or anything else) in dollar terms is technically "infinity."

Because of these larger forces undergirding his gold thesis, the unkind short-term action in gold doesn't worry Paul.

»Read more
  Monday, 17 Jun 2013 | 1:47 PM ET

Buy Natural Gas: Trader

Posted By: Anthony Grisanti

Natural gas had a huge Monday, rising nearly 4 percent. So will it get back above $4 anytime soon?

If you have been watching CNBC's "Futures Now" or reading our blog, you are all well-aware of where I am on this one: I like nat gas higher.

We traded to a three-month low on Friday, and have now found some solid support. We've only started the summer, when demand increases.

»Read more
  Monday, 17 Jun 2013 | 12:32 PM ET

Get Ready for $100 Oil: Pro

Posted By: Jim Iuorio
Getty Images

Crude oil is rising to a nine-month high on Monday. So what's next?

Several developments have recently provided a tailwind to crude prices, even in the face of the ongoing bearish story for oil, which has been the tremendous amount of supply.

Unrest in Syria has reminded markets that there is always the threat of the sort of headline risk that can make shorts very uncomfortable.

(Read More: Oil Hits 9-Month High As Syria Tensions Escalate)

»Read more
  Monday, 17 Jun 2013 | 8:28 AM ET

What Will Drive Gold Now: Pro

Posted By: Rich Ilczyszyn
Tom Grill | Age Fotostock | Getty Images

The "Big Boys" are cutting their gold positions—so should you?

Hedge funds reduced their net long positions in gold by 4.1 percent, according to the Commodity Futures Trading Commission's weekly Commitments of Traders report. The continued banter about the tapering of quantitative easing has led investors to bet that interest rates and the dollar will both rise, reducing gold's appeal at these levels.

Gold continued to consolidate during early Monday trading, stalling out with a high of $1,391.40. Support comes in at $1,380 to $1,383, as the market has stayed just above here, putting in a low of $1,384.10.

(Read More: Peter Schiff Comes Out Swinging: Gold's Going 'to the Moon')

»Read more
  Friday, 14 Jun 2013 | 10:52 AM ET

Market Mavens Say Correction Is Ending

Posted By: Alex Rosenberg
John Moore | Getty Images

It was the market move that everyone seemed to be expecting: the correction that the S&P 500 has suffered over the past month.

After being presaged for months by technicians, portfolio managers and traders alike, the market's uptrend finally broke on May 22. On that day, the S&P rose above 1685 to a record high, before reversing on concerns that the Federal Reserve would soon roll back quantitative easing.

Within two weeks, the S&P dropped to 1598 before recovering. So were those 5 percentage points the entirety of the correction that so many were fretting over for so long?

"We've had a correction that, peak to trough, was very shallow," Leuthold CIO Doug Ramsey said on Thursday's installment of CNBC's "Futures Now." "But what's been encouraging is just the fear I've seen on many of the sentiment data points that I track, all of which have taken some heavy damage considering how shallow this pullback has been."

»Read more
  Friday, 14 Jun 2013 | 10:00 AM ET

Why I'm Selling Gold Today: Pro

Posted By: Rich Ilczyszyn
Altrendo Images | Getty Images

Gold remains confused under $1,400. Is it a currency or safe haven? Whatever your philosophical view of the yellow metal, you have to use the technicals to trade it.

Gold retreated in early Friday trading after rallying into Thursday's electronic close, when it tested the $1,388 pivot level on the upside.

Thursday's low was $1,373, just higher than Wednesday's early low of $1,372. A higher low will help support this market's attempt to consolidate back towards $1,396. However, a violation of this level, and furthermore a close below, will lead to a much lower trade—at a minimum, a test of the $1,364 support level. A close back above $1,380 to $1,383 will help neutralize this market going into the weekend. However, only a close back above $1388.40 to $1390 will help ignite a trade higher.

(Read More: Gold Clips Earlier Losses as Market Seeks Fed Clarity)

I have spoken to several hedge fund traders with a billion or more in assets under management, and they have reduced their gold holdings by 2 percent to 6 percent, while increasing stock exposure. This is important, because physical demand alone will not bring gold to all-time highs—the big players must step back in the market.

(Read More: Peter Schiff Comes Out Swinging: Gold's Going 'to the Moon')

»Read more
  Wednesday, 12 Jun 2013 | 11:54 AM ET

Are You Buying or Selling Nat Gas?

Daniel Acker | Bloomberg | Getty Images

It's been a tough month for natural gas. The futures have suffered a ten percent drop in two weeks, as inventories of the commodity have soared.

On Wednesday, nat gas hit a three-month low in the overnight session, before quickly recovering, for a 1.4 percent rally as of noon.

Summer does tend to be a better month than spring for natural gas, because nat gas is used to heat and cool homes—activities that are far more popular in the summer and winter than in the spring and fall.

»Read more
  Wednesday, 12 Jun 2013 | 10:03 AM ET

Key Levels for the S&P

Posted By: Rich Ilczyszyn
Getty Images

If the S&P closes above 1650, we will retest yearly highs.

Equities suffered an extremely choppy day on Tuesday, as the rally in the Japanese yen caused late selling. I still feel that this a "buy the dip" market, but there are reasons to be cautious.

The S&P stalled on Tuesday against resistance at the 1639 to 1642 level, which coincidentally was a lower high in the session compared to the reopen overnight. With a rally that failed at 1639.75, many of the indexes touched the unchanged level before running out of gas. The breakdown late into the close didn't lead to a new low, but solid data out of Europe on Wednesday morning has helped keep the S&P in a range.

(Read More: Futures Climb After S&P 500 Slumps 1%)

The market is now back above the major momentum pivot of 1631 to 1633. MSCI cut Greece from developed nation to emerging market status, but the market has shrugged this off, and may still be concentrating on the positive news on the US credit status that came out Tuesday but failed to attract many headlines. The fact is that S&P upgrading the U.S. sovereign debt rating to "stable" from "negative" should be more positive for the market than many have made it out to be.

(Read More: From Developed Back to Emerging: Greece's Full Circle)

»Read more
  Wednesday, 12 Jun 2013 | 9:40 AM ET

Schiff Comes Out Swinging: Gold’s Going 'to the Moon'

Posted By: Alex Rosenberg

Every man has a day on which he turns a new leaf. For Peter Schiff, that day has not yet arrived.

This year, "gold can certainly make a move up to $1,700 or $1,800, but I think ultimately it's going a lot higher than that," Schiff said Tuesday on CNBC's "Futures Now."

In fact, the gold bull not only remains bullish—he remains extremely bullish.

"When the world figures out the position that we're in, gold is going to the moon," said Schiff, CEO of Euro Pacific Capital.

Schiff believes that continued monetary easing from the Federal Reserve will lead to inflation that will spike gold. So does talk that the Fed will look to "taper" easing worry him?

Not in the least.

"The Fed has no exit strategy," Schiff said. "It's all fluff. There is no taper, because taper is impossible without collapsing the economy, the banks, and the U.S. government."

(Read More: The Fed Taper: Reasons for Comfort)

In fact, he added, "what we're probably going to have to get from the Fed is more QE. They're going to have to print even more money and buy even more bonds to prevent this market from imploding, and that is extremely bullish for the price of gold."

»Read more

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