Thursday, March 31, 2011

Are Stocks & Commodities About To Start Another Rally?

Over the past couple months everyone seems to have been preparing for a sharp market correction. Crazy part is that the SP500 dropped about 10% from the high and that is a typical bull market correction. The thing is… the stock market has a way of slowly unfolding making it look and feel minor, then before you know it, the correction is over and it’s back to an uptrend. That is kind of how this one unfolded.

The good news is that we caught the low risk portion of the correction locking in a 4.5% drop, and we are now in a long trade and in the money by 2.5% with very little down side risk at this point. Time will tell if this up trend is sustainable or not…

Now, let’s take a look at the charts…

Dollar 60 minute intraday chart
As you can see below the dollar looks to have started a breakdown today. If there is continued selling pressure in the next couple days then expect to stocks and commodities to move higher as the US Dollar drops. It is important to know that when a bullish pattern fails we typically see a very strong reaction in the opposite direction (down) catching the majority off guard and they rush to the door.
SPY Broad Market ETF – Daily Chart
A couple weeks ago we watched the market go into a free fall creating a washout bottom. From there we saw prices bounce back and retake my key moving averages. This gave us a bullish bias and dips should be looked at as buying opportunities. I will admit that stocks still have a long way to go before the masses are convinced. I feel we need to see the February and March highs get taken out first. Once they get taken out there should be strong buying as short covering (protective stops from traders who are short) causes a surge in buying pressure sending stocks sharply higher yet again.
My trading buddy David Banister at Active Trading Partners is starting to see small cap stocks come back to life. Money is starting to flow into these lucrative areas of the market and he is on top of things… This week’s trade is up 20% in less than 24 hours which is very exciting.
Gold Daily Chart
Gold has been moving up this year but the current price action is not really getting me excited to buy just yet. Recently we have seen strong selling volume and very light buying volume. My bias still favors higher prices but there is still a good chance we get another dip in the coming sessions.
Mid-Week Trading Conclusion:
In short, I feel as though the dollar will trigger the next wave of buying in stocks and commodities for the next week or two… We should see the dollar make a clean moving in either direction shortly and that will help guide my analysis, positions and setups. I hope this analysis helps you to see the market from a different perspective.


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Wednesday, March 30, 2011

Surprising New Video: Gold or Silver....Which is the Right Precious Metal for You?

Sure, gold dominates the headlines. But which would you rather buy right now, gold or silver?

Gold has incredible amounts of emotional baggage attached to it, while silver is in a different league, at least for the moment. This video will show you two indicators that can help you capture either market when and if the upward trend decides to resume.

With all of the world's troubles, there are plenty of reasons why one would think that both of these markets should be much higher. The question is, why aren't they? We think that the video you're about to watch will help answer some of those questions.

In today's short educational trading video, we put together comparisons between these two markets and why the obvious choice may not be the best choice.

As always our videos are free to watch and there are no registration requirements. Please feel free to leave a comment and tell us what you think of the video and also what you think of gold and silver.

Watch "Gold or Silver....Which is the Right Precious Metal for You?"

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Thursday, March 24, 2011

New Report Analyzes Tipping Point of Gold and Equities....Are You Ready?

Equities and Precious Metals are on the edge of another rally and it could start as early as tomorrow.

On March 13th I posted some of my analysis online showing how the market was trading at a key pivot point and that a sharp price movement was about to unfold. I also provided everyone with the direction in favor which played out perfectly catching a 4.5% in three days.

As of today we are getting the same setup I saw on March 13th [see "It Looks Like Crash or Crush Time For Equities and Gold"] but this time it’s pointing to higher prices. Take a quick look at the charts I was looking at for both the SP500 and gold and you will notice that the SP500 and gold both moved to the support levels before starting to bounce.

While we caught the move down on the SP500 playing the SDS Double leveraged inverse fund we did not take part in falling gold prices. Reason being, there is so much fear in the market and the amount of surprise news popping up each week I don’t think shorting precious metals is a safe call. Rather I am looking for a pullback to cleanse the holders of the commodity then I will buy once price confirms the continuation pattern has completed.

Now, stepping forward to this week’s price action

SPY Daily Chart
We can see in the chart below that price is currently testing a key resistance level. Before the week is over we could see some big price movement equities. I need to see what happens tomorrow but I have a feeling we could see a breakout to the upside for a long position.


Gold Miners Fund Daily Chart
Gold stocks have be under performing the price of bullion for a few months but it looks as though they could be starting a sizable rally. If gold stocks continue to move sharply higher out of this pattern, then it’s a positive sign that gold and silver bullion will both continue to move up.


Mid-Week Trend Report:
In short, stocks and commodities may have shaken the weak positions out of the market during the recent pullback in price. Things could be ready to start another multi month rally and trade setups. Keep your eyes on the charts....

Just Click Here if you would like to get these reports sent to your inbox each Sunday & Wednesday. Check out The Gold and Oil Guy.Com


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Tuesday, March 22, 2011

“Day Trading Made Simple” Now Playing on Trend TV

William Greenspan has over 155 consecutive winning months using his “day trading” system. As a day trader since the early 70s, he has walked in the pits of the CBOT and CME practicing his philosophy of making “a million dollars on a million trades, not a million dollars on one trade.”

Greenspan shares his strategy as well as best practices for successful trading on Trend TV

“Discipline. That’s the key to success in so many aspects of life and it’s the main ingredient of any successful trading plan. But, what does discipline really mean to an intraday trader?
Discipline means taking small quick losses and letting your profits ride. That’s the key to all successful trading. Discipline means using stop loss orders on every trade to limit your losses and moving your stop loss orders to protect your profit.

That’s kinda like grooming your position. When you have a profit in a trade, you should take your stop loss order and move it first to your break even point, and then if your trade continues to trend your way, to always protect your profit along the way. Three, discipline means following all the buy and sell signals that your trading plan or system of trade has to offer you.

In all trading you must expect losses and you must accept them gracefully, because it may take only one mistake to wipe out the profits of ten winning trades…”

To watch the full video with William Greenspan, please visit Trend TV. Once you receive your password, you can visit Trend TV anytime and watch new videos as they are added.

We hope you will be able to use Greenspan’s experience to grow your profits and protect you from that one big mistake.

Just Click Here to take advantage of everything Trend TV has to offer!



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Wednesday, March 16, 2011

How to Gauge the Equities Market so You Don’t Buy to Early!

From Chris Vermeulen at The Gold and Oil Guy......

Over the years I have found an indicator/trading tool which I find help spot intermediate trend reversals. I am going to quickly cover in this report. As most of you know the 20 simple moving average is a great gauge for telling you if you should be looking to buy the dips or sell the bounces. It’s an indicator I keep on the broad market charts like the SP500, Dow and NASDAQ.

The chart below shows the percentage of stocks trading above the 20 moving average. When this indicator falls below 20%, I make sure I start to protect my short positions with more aggressive protective stops and keep an eye on short term sentiment, volume ratios, options and price action as a bottom can take place at any time and very quickly. Bottoms tend to be more of an event happening quickly with a washout/panic selling day followed by a sharp rally, while intermediate market tops drag out taking weeks if not months to roll over and are very difficult to trade which is what we have been experiencing so far this year.

Mr. Jones once of my trading buddies who focuses strictly on Options Trading has been cleaning up with the current volatility making 21%, 50% and 67% returns on his last threes trades. This guy loves volatility and always seems to have an options strategy for every situation the market dishes out. Check out his service at OptionsTradingSignals.com

As you can see this indicator is currently trading in the lower reversal zone and I feel a bottom will form before March is over.


SP500 Daily Chart
The SP500 continued lower today, which is what I mentioned, would most likely take place in my pre market video this morning. The trading session was a roller coaster with news on Japans reactors causing large waves of buy and selling throughout the day. I have not seen traders follow the news so close like this in some time… Everyone has their fingers hovering over the buy and sell button these days.

Looking at the bottom indicator which is my gauge of panic selling within the market, it has yet to close above 15 which is the minimum number I typically look for before I start zooming into the intraday charts for a long entry (market bottom). We still could see much lower prices before we see that.


Gold 4 Hour Chart
This chart is the same one I showed in my Sunday night report, which explained why gold should test the $1380-1390 level in the coming days. We did see that unfold this week but now the chart is pointing to possibly even lower prices with a support range between $1360-1380 taking place this week. Keep an eye on it as it should be swift if it does occur.


Mid-Week Trend Report:
In short, we are finally getting the correction everyone has been waiting for and now that it’s started and we are short, we must start watching closely for a bottom because they can take place very quickly.

My focus is still on playing the short side but I have my antennas up just in case signs of a bottom start showing up.

If you would like to get my free weekly reports just Click Here to visit The Gold and Oil Guy.Com


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It's Here....Your Official Invitation to MarketClub TV

This is it, the moment every trader has been waiting for....

After weeks of planning and preparation, our friends at MarketClub have officially announced the launch of MarketClub TV.

And you are officially invited to join them ONLINE for the premiere episode:

Join us ONLINE for the premiere episode of MarketClub TV at 7:00pm eastern, Thursday, March 17th

Register Now It's FREE!

You are going to both love and be blown away by MarketClub TV and the LIVE, INTERACTIVE, wealth-building tips, news, insights and money making plays it gives you.

Yes, that's right, I said 'interactive'. Each week Adam Hewison and his team at MarketClub will...

* Discuss the biggest movers and shakers of the week
* Uncover the hot, new trading opportunities that are starting to take shape...
* Look at powerful, ongoing trends and the best ways for you to profit from them...
* Show you MarketClub's proprietary Trade Triangles in action and illustrate the easiest, most effective ways to use them...
* Plus much, MUCH more!

Here's the best part of all though: Throughout each show you'll be able to email... instant message ('chat')... Tweet... or call in any questions, comments, or ideas you may have and we'll go over them right then and there, live on the air.

In other words, you'll be getting the kind of tips, picks, news and insights that can launch your trading success to an all new high...

You'll be able to watch it all LIVE, each week, in the comfort of your own home for FREE.

You'll be able to talk with us, ask any questions you may have, and get the answers you need on the air, right then and there.

And, if you happen to miss an episode, there's no need to worry - you'll be able to replay any episode you like, whenever you like, as often as you like.

MarketClub TV will be broadcast LIVE, online Thursday evenings at 7:00pm eastern starting with the premiere episode is this Thursday, March 17th.

PLUS, to kick things off with a bang, one lucky viewer will win a 1 year membership to MarketClub. Everyone who registers to watch Thursday's premiere episode will automatically be entered into the drawing. And the winner will be announced LIVE during the show.

Just you wait and see, Click to check out MarketClub TV. It is going to rock your world! See you there!


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Monday, March 14, 2011

It Looks Like Crash or Crush Time For Equities and Gold

The past couple weeks have been choppy in the equities market. While the strong intraday moves are great for day traders, it is extremely difficult for swing/position traders who normally hold positions for 3-60 days in length, which is my focus with this newsletter. That being said, we are reaching a do or die point for the equities market and next week there should be a strong move out of this trading range.

On the volume side of things, we have been seeing distribution taking place. Heavy volume continues to step into the market unloading large amounts of shares. The interesting part is that the majority of traders are bullish and sentiment levels are at extremes. Also, we are seeing the retail trader enter the market… What does this mean? It means we must trade very cautious and large positions on the long side shouldn’t be taken. The selling volume and extreme bullish sentiment are warning us that a correction is near.

There are a few things I watch to identifying trend reversals and they are accumulation or distribution of shares, Extreme sentiment readings, Market internals/breadth, and if the price relative to the 20 SMA. Currently we are seeing all the signs of a reversal to the down side, but it has yet to be confirmed.

My trading buddy JW Jones who focuses strictly on Options Trading has been cleaning up with the current volatility making 21%, 50% and 67% returns on his last threes trades. This guy loves volatility and always seems to put together an option play with very little risk yet big upside potential.

Just Click Here take a look at a couple charts that Chris Vermeulen has posted......


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Thursday, March 10, 2011

Be Patient, Looks Like Gold & Stocks are on the Verge of Breaking Out!

Do you have the kind of patience in your trading that Chris Vermeulen of The Gold and Oil Guy.Com does......

The past couple weeks we have seen strong distribution selling in the equities market followed by equally large days of buying. These buying and selling frenzies have formed a sideways consolidation.

Intraday movements have been sizable and more than enough to shake those trying to pick a direction early out of the market a few times. As fewer traders get involved the price range narrows and becomes compressed. Eventually there will be a breakout in a direction on heavy volume and with any luck it will start a new trend.

As much as I love to trade, I have been sitting on the sidelines for a few weeks giving this market some time to sort it’s self out.... As we all know there are times when you get really aggressive and other times when it’s best to stand aside.

It is very important to note that each trader sees the market in a different way and once it is aligned with what you are comfortable with trading, only then should you step in and trade. If not, then it’s best to wait for more favorable price action. It took me years to figure this out but now that I know what I am looking for and on what time frames, trading is less stressful and I know I don’t need to be trading all the time, there is always another opportunity just around the corner....


Gold has been trading sideways for almost two weeks now as it tries to break free of the December high. It is much in line with the SP500 chart above. I feel Friday or early next week that the market, dollar, metals and oil make some sizable moves either up or down....


Mid-Week Conclusion:
In short, I don’t think it is wise to jump the gun and take on any large positions until we see what happens on Friday overseas....

If nothing happens which is kind of what I am thinking, we should see the extra fear value come back out of the price of gold, silver and oil (drop in price) and possibly help boost equity prices.

To get Chris Vermeulens free weekly reports and trade ideas to your inbox, just sign up at The Gold and Oil Guy.Com


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Monday, March 7, 2011

People Laughed at Adams "How to Trade Crude Oil in Just 90 Seconds"

A few years back our partner Adam Hewison did a video about learning how to trade crude oil in 90 seconds. Some people laughed, but they’re not laughing now as huge profits continue to pile up in the crude oil market thanks to this tried and true method of trading.

When you watch the video you must realize that we have upgraded the MarketClub interface to a much higher standard. However, the concept of trading has remained the same. The same rules apply now just as they did 4 years ago.

So wouldn’t you like to be trading with a proven trading plan that actually works? Now you can, thanks to MarketClub’s “Trade Triangle” technology. It is easy to learn, quick to implement and the rest you will see on your bottom line.

You have clear, concise signals that show you the trend and where the market is headed. Is this approach correct 100% of the time? Absolutely not, there’s not one program out there that is correct 100% of the time in any market. If you see something like that....Run the other way as it’s a scam.

Look at the recent opportunity you missed by not using MarketClub’s Trade Triangle technology.


Adam is putting his decades of experience on the line here, but we want you to watch this video and see just what we were saying years ago. Notice how we haven’t changed courses with the latest and greatest and see why we haven’t changed our approach to the market. The reason? It works. And why would you want to change a winning system?

Just click here to view the amazing December ’07 video. As always our videos are free to watch, even the ones we consider classics like this one.

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Thursday, March 3, 2011

Important Article on Long Term Trends in Gold, Silver, Crude Oil....and Much More!

If you are trading with multiple time frames it's a good idea to be open minded and every now and then look at some different time frames to be sure you have a solid understanding for the longer term trends in play. I will admit that it’s easy to get caught up in trading the shorter time frames like the 1, 10, and 60 minute charts especially when there are large intraday movements. But every night you must reset your thinking by looking at the bigger picture.

Here are the weekly and daily charts which I think provide a big picture view of things.....Read "Important Article on Long Term Trends in Gold, Silver, Crude Oil"


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Wednesday, March 2, 2011

Precious Metal Target Zones

The gold and silver markets rallied dramatically to the upside as concerns and worries over oil supplies, inflation, and general nervousness in the world markets pushed both metals into new high ground.

We have just completed a new short video where we share with you our upside target zones for gold. The video only takes a few minutes to watch and emphasizes how important technical analysis is in the gold market. Our weekly Trade Triangles have been long gold from $1,368 and it looks as though that position is going to work out well.

We also refer back to a video that we made on September 20th last year, which underscores the importance of cyclic work in the gold market and, how if these same cycles hold true, can predict with a fair degree of certainty when the next cyclic high is going to occur.

We reveal all of this in this new short video that we think you'll find both informative and educational. And as always all our videos are free to watch and there are no registration requirements.

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