In this 4 minute video we explain exactly what we mean by a "short gold position." It does not mean we are bearish on gold, however the scenario we point out in this video could make money by being short gold and long another important market.
The video points out what the scenario is, and which market you should be long in, against a short gold position. This is an interesting twist and a video you shouldn't miss.
As always our videos are free to watch and there is no registration required. Please feel free to re-tweet this video on Twitter or share this video on Facebook. Also take a minute to leave a comment and let us know what you think about the video.
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Wednesday, February 23, 2011
Thursday, February 10, 2011
Gold Miners Index May Be Warning Us…...
The past couple weeks we have been keeping a close eye the price of gold and the gold miners index. We check to see if its pointing to higher or lower prices in the near future using inter-market analysis, price and volume, along with technical analysis. At this time the charts are still pointing to lower prices in the coming days or weeks.
Taking a look at the daily chart of Gold
As you can see it has formed a bear flag with declining volume and the price has drifted up into a resistance level. This combination typically leads to lower prices. With international fears floating around and the fact that inflation has started does make me a little weary of shorting gold but one thing we have learned over the years is that trading on fundamentals and news clips seen on TV is not a reason to pass on a setup if one forms in the coming days.
The only thing that pays in the stock market is when the price action goes in your favor. This is why we focus on price, volume and momentum while avoiding what others are saying elsewhere. Trading is a numbers game and we put our money on the table when the odds are clearly favoring one direction. Unfortunately we are trading trades against what the masses think and feel is the right thing to do.
Gold Miner stocks are forming much of the same pattern as gold bullion but today (Wednesday) the chart actually put in a possible reversal candle. If this is correct then we should see gold and most likely silver follow suit tomorrow by moving lower and possibly even start a correction.
Gold Swing Trading Conclusion:
In short, gold stocks sold off strong today while both gold and silver closed only slightly lower. When this happens near a resistance zone, with a bearish price and volume patterns I start to look for a shorting opportunity. It has yet to happen and we are not going to jump the gun, but we are waiting for the right opportunity to take advantage of these trading instruments.
Just click here if you would like to subscribe to our daily trading analysis, swing trade alerts and newsletter.
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Taking a look at the daily chart of Gold
As you can see it has formed a bear flag with declining volume and the price has drifted up into a resistance level. This combination typically leads to lower prices. With international fears floating around and the fact that inflation has started does make me a little weary of shorting gold but one thing we have learned over the years is that trading on fundamentals and news clips seen on TV is not a reason to pass on a setup if one forms in the coming days.
The only thing that pays in the stock market is when the price action goes in your favor. This is why we focus on price, volume and momentum while avoiding what others are saying elsewhere. Trading is a numbers game and we put our money on the table when the odds are clearly favoring one direction. Unfortunately we are trading trades against what the masses think and feel is the right thing to do.
Gold Miner stocks are forming much of the same pattern as gold bullion but today (Wednesday) the chart actually put in a possible reversal candle. If this is correct then we should see gold and most likely silver follow suit tomorrow by moving lower and possibly even start a correction.
Gold Swing Trading Conclusion:
In short, gold stocks sold off strong today while both gold and silver closed only slightly lower. When this happens near a resistance zone, with a bearish price and volume patterns I start to look for a shorting opportunity. It has yet to happen and we are not going to jump the gun, but we are waiting for the right opportunity to take advantage of these trading instruments.
Just click here if you would like to subscribe to our daily trading analysis, swing trade alerts and newsletter.
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Tuesday, February 1, 2011
Why is Gold Not Going Higher With All of The Turmoil in Egypt?
While the gold bugs argue that the market is being manipulated, we are more realistic and respect what the market is actually doing. The big question on everyone's mind is: Why are food prices and other commodity markets soaring, while gold is dismally staying down in the $1,330 area?
MarketClub's Trade Triangles are all Red, meaning that the trend for gold is likely to remain negative or at best move in a sideways fashion. Our best estimation at this point in time is that we are going to see more sideways action and probably some recovery from current levels. However, we would like to see some concrete evidence that the market has actually put in a low and that we will see a recovery in this yellow metal in the future.
Although historically our monthly RED Trade Triangles have not been successful in gold. You would have been more successful fading the RED monthly Trade Triangle signal and going long gold.
Before getting, "gung ho" on this approach, you will be better off waiting for a green weekly trade triangle to kick in which would indicate that the market has probably made a low. That is the main reason why, we recommend using the weekly Trade Triangles for trend, and daily Trade Triangle's for timing.
In this short video, we explain what we mean and show you concrete examples of how you can use this strategy to make money. As always our videos are free to watch and there is no registration requirements. Our only request is that you tell your friends, Tweet and Facebook about this article and the video. We would also enjoy hearing from you, so please feel free to leave a comment and tell us where you think gold is headed.
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