Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
QE Forever: The Fed's Dramatic About-face - 21st Feb 19
Gold Technical Perspective – Why So Bullish? - 21st Feb 19
Sheffield "Mi Amigo" Memorial Fly Past at 8.45am on 22nd Feb 2019 - 20th Feb 19
Here’s The Real Reason You Stress About Money - 20th Feb 19
Five Online Marketing Predictions that will Matter in 2019 - 20th Feb 19
Has Gold Price Reached Upside Resistance Near $1340-1360? - 20th Feb 19
So Many Things are Not Confirming Stock Market Rally - 20th Feb 19
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

Gold and Crude Oil Market Meltdown Analysis

Commodities / Commodities Trading Jul 30, 2009 - 01:27 AM GMT

By: Chris_Vermeulen

Commodities

Best Financial Markets Analysis ArticleEverything is playing out exactly as we hoped and expected this week. We have been so close to a buy signal in gold and silver but Monday’s intraday observations saved us from a nasty trade.

Those of you in love with oil just had a Kiss Good Bye! Better PUT some love letters together J pardon the pun.


Natural Gas is all bottled up. Can you smell that?

Gold ETF Trading – Gold Bullion Price Action
As mentioned in the last couple reports we are currently waiting for a correction which will hopefully provides us with a low risk entry point. Since June we have been in a short term down trend, but the longer term trend is still up. Which is why we are looking for a buy signal and not a short. The past couple days we have seen gold and silver sell down.

Looks like big floor traders are “running the stops” which is when the majority of the public is trading all in one direction (up) and the floor traders manipulate prices to trigger peoples stop orders and shake them out of the trade before continuing in the direction of the overall longer trend. This is explained in my Trading Manual for exiting trades for maximum profits, avoiding the floor traders from running your stops and how to take advantage of it report. This will all be explained once I have that report completely written. It is the one thing most traders don’t know, yet is the most crucial knowledge to trade with.

Anyways, for gold and silver we could see more downside but until the selling dissipates we will wait.

HUI Index – Gold Stock Index
In short, on Monday when gold and silver moved higher on weak intraday price action, gold stocks moved lower telling me smart money was unloading before bullion tanks. This goes to show how much attention should be made when trading. I know so many people went long gold Monday only to take a beating every day since. This is what I like to avoid.

Silver ETF Trading – Silver Bullion Price Action
Silver is in the same boat at gold. Popped higher on Monday as novice traders get sucked in and spit out a day or two later. The worst part is that PM’s could and should reverse soon and move higher. This is what frustrates people immensely. The average trader is normally right but at the wrong time. Getting shaken out of a trade only to see it reverse and continue in the direction you were ready for.

Natural Gas ETF Trading – Natural Gas Price Action – Weekly Chart
Natural gas stinks, not much to say here in my opinion. I think it is way over sold and do not want to short it. I would rather wait for a breakout and low risk buy setup.

Crude Oil ETF Trading – Crude Oil Price Action – Daily Chart
This is the same chart I posted last week of crude oil. Simple breakdown and retest of both support trend line resistance (The Kiss Good Bye!), and blue high lighted zone on the chart. Saw it coming and was planning on using DTO for a nice bear play but prices just ran not providing a low risk entry point. Great for day traders thought!

Overall I am still bullish on oil, but this just had a feel to it that selling was about to step in for a quick down draft. This is a high spec trade and would only last 1-3 days most likely for a quick gain if taken.

Trading Conclusion:
Overall it’s been a great week. Our golden rocket stock picks are up, and we are getting the pullback in price for gold and silver which will hopefully provide us with a low risk entry point shortly.

The energy sector is nothing special in my eyes technically speaking. Those of you who entered the market in Feb & March with me using XTR.TO energy dividend fund should be happy as we all received our quarterly dividend payments of 4%. With the energy sector currently on edge it could be a good idea to put in a small hedge against our long term dividend energy play here. Using a leveraged bear energy fund works well for the short term like HED.TO. Just a small position to counter balance movement of the long position. I like to hedge some of the long position so that if I am wrong and prices continue higher then my long position will still make money. But if I am correct and the market moves lower, my hedge will rise and cover most (not all) of my losses from my long position. The dividends cover the balance.

Hello, I'm Chris Vermeulen founder of TheGoldAndOilGuy and NOW is YOUR Opportunity to start trading GOLD, SILVER & OIL for BIG PROFITS.  Let me help you get started.

If you would like more information on my trading model or to receive my Free Weekly Trading Reports - Click Here

If you have any questions please feel free to send me an email. My passion is to help others and for us all to make money together with little down side risk.

To Your Financial Success,

By Chris Vermeulen
Chris@TheGoldAndOilGuy.com

Please visit my website for more information. http://www.TheGoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.  

Chris Vermeulen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules