Silver Is Starting to Look Dull at Current Prices
- Written by Chris Vermeulen
- Monday, 01 June 2009
The technical outlook on the silver market does not look all that strong when looking from a distance. I like to keep eye on the longer term trend lines for possible support and resistance levels which are easily missed if you only follow the daily charts.
Add a commentInter Market Analysis--Gold, Silver, Oil & Equities
- Written by Chris Vermeulen
- Tuesday, 26 May 2009
After a 10 week rally traders and investors are starting to think twice about dumping money into stocks. Since March, we have seen the equities market rally 30% and now everyone is starting to think prices are a little top heavy.
So what do we do now if the market is possibly forming an intermediate (6-10 week) correction?
I like to hedge my long term holdings (retirement account). These are stocks which were purchased near the market bottom and are paying high dividends. Using options or leveraged inverse funds I hedge my positions until the market looks to be bottoming again. I like to play the much shorter term trades which last 1-20 days using the triple leveraged funds like FAZ and TZA.
Add a commentGold & Gold Stocks Riding a Thin Line
- Written by Chris Vermeulen
- Friday, 10 April 2009
Gold Precious Metal Trading Report
- Written by Chris Vermeulen
- Monday, 27 April 2009
Weekend Gold Precious Metal Trading Report
Last week was interesting with precious metals stocks finding support and moving higher to close above resistance on Friday.
Not much has changed in the past few days other than the BP chart (bullish percent index chart) for gold miner stocks which has put in a short term bottom. If gold continues to push higher above its resistance trend line I think we could see gold stocks follow suite and eventually out perform gold.
The BP chart can stay in the upper zone for several months as gold & gold stocks run higher at an accelerated rate.
Gold Precious Metal Bullish Percent Chart
Gold GLD Precious Metal Fund
Gold continued to move higher on Friday closing above two key resistance levels. Gold closed above my resistance trend line and 50moving average which sets a bullish tone.
What makes me excited is that gold rallied with the broad market. I mentioned in a previous report that when the broad market is so over bought and ready for a correction people were starting to put their money into gold because it’s known as a safe haven. In the past the broad market would rally and gold would go down; if the broad market pulled back, gold would rally.
So with Fridays rally in both gold and the broad market it says a couple things to me.
- Friday was light volume and only buyers were sticking around buying the market higher.
- Broad market is over bought & at resistance, smart money is moving into gold.
Gold Precious Metal Trading Conclusion:
Gold and the broad market have set the stage for another rally in gold with the broad market moving lower over the next 3-6 weeks. I do not think the broad market will make a new multi year low but I think will correct 50% of this current rally.
I can see gold testing the $1000 mark again but do not think it will breakout and rally much higher. This is because if we get a controlled pullback in the broad market over the next 3-6 weeks and stocks start to rally again confirming a bottom in the stock market then I think we will see a lot of money get pulled out of gold and put into equities.
We should have some exciting movements this week with gold testing resistance and oil staring to move higher in its final stages of a cup & handle formation.
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The Gold and Oil Guy
The Gold Sector & The Most Powerful Indicator
- Written by Chris Vermeulen
- Tuesday, 07 April 2009
The Gold sector has been performing relatively well over the past month. The price of gold has broken trend line support but is still holding horizontal support and forming a bull flag.
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