New Video: The Perfect Portfolio for 10,000 or 10,000,000 Dollars

There is a saying which has been attributed to a fictional Chinese storyteller named Kai Lung and it goes like this, “May you live in interesting times”.

Well my friends, we do live in interesting times, very interesting times. With China holding the largest share of US debt, inflation just around the corner, and no light at the end of the tunnel for the unemployed - these are interesting times.

So what’s going to be the best plan of action for your money in the next three years? Is the value of your portfolio going to be cut in half, or is it going to double? I have my game plan in place, do you have yours?

Introducing “The Perfect Portfolio”

I’ve given a lot of thought as to what’s going to happen in the next three years. Specifically, what I am going to do with my own portfolio and my own money. I have scoped out several markets that I think are going to offer excellent opportunities, no matter what happens to the economy. Yes, you heard me right. No matter what happens to the economy, I believe that this “Perfect Portfolio” will work for you in the next 36 months whether you have 10,000 or 10,000,000 million dollars.

In this video I show you exactly the number of trades you would’ve made with the “Perfect Portfolio”.

We back tested the portfolio using our “Trade Triangle” technology for 42 months through some of the toughest, most difficult markets the world has ever seen. I think you will be pleasantly surprised at the results of these two portfolios.

Just Click Here for the "Perfect Portfolio".

Big Draw in Gas Supply Sends Energy Prices Jumping

Refineries that make gasoline and other fuels swiftly cut back on production last week, the government reported Thursday, sending energy prices jumping across the board. Energy markets had largely brushed off a winter weather forecast this week for major winter storms in the East and icy, cold conditions even between Atlanta and Dallas.

The Energy Information Administration, however, reported Thursday that gasoline in storage fell by more than 5 million barrels at a time when most energy experts expected supplies to grow yet again. Refiners have been idling facilities because of a lack of demand at the same time that others have been shut down for routine maintenance. Earlier Thursday, the dollar hit a 52 week low and the surprise report on gasoline may have led some people to believe supplies are growing tight, said oil analyst Tom Kloza said.

"The ignition switch for a rally got hit twice today," Kloza said. For consumers, that may mean a slight drift upward in pump prices but not much, experts believe.
Crude and gasoline prices have remained relatively stable for months with no clear signs of an economic rebound. Prices began to rise late last week when Alcoa, which kicks off the U.S. earning season, reported that it had returned to profitability after three straight quarterly losses.....read the entire article

Jeff Rubin: NOW is Time to Buy Oil

Fmr. CIBC World Markets Chief Economist Jeff Rubin on oil prices.

Oil Rises After Report Shows Unexpected Drop in Gasoline Supply

Crude oil futures rose after a U.S. government report showed an unexpected decline in supplies of gasoline. Gasoline inventories dropped 5.23 million barrels to 209.2 million in the week ended Oct. 9, the Energy Department said today in a weekly report. Stockpiles were forecast to increase by 1.13 million, according to the median of analyst estimates in a Bloomberg News survey.

Inventories of crude oil rose 334,000 barrels to 337.8 million, the department said. Supplies were forecast to increase by 1 million barrels. Crude oil for November delivery increased 76 cents, or 1 percent, to $75.94 a barrel at 11:07 a.m. on the New York Mercantile Exchange. Oil traded at $75.26 a barrel before the release of the report at 11 a.m. in Washington.....read the entire article.

Crude Oil and Natural Gas Daily Technical Outlook

Nymex Crude Oil (CL)

Crude oil's rally extends to as high as 75.96 so far and intraday bias remains on the upside for the moment. Current rise is still expected to continue to 38.2% of 147.27 to 33.2 at 76.77 and break will target 80 psychological level next. On the downside, below 74.64 will turn intraday outlook neutral and bring retreat but downside should be contained by 70.74 support and bring rally resumption.

In the bigger picture, medium term rise from 33.2 is still in progress and could extend further. Nevertheless, strong resistance should be seen in 76.77/90.24 fibo resistance zone (38.2% and 50% retracement of 147.27 to 33.2) to conclude the medium term rise finally. On the downside, in case of pull back, break of 65.05 is needed to indicate that crude oil has topped out. Otherwise, further rise is still in favor.....crude oil charts.

Nymex Natural Gas (NG)

Natural gas' retreat from 5.12 is still in progress and intraday bias remains neutral for the moment. Some more consolidation could be seen but after all, short term outlook will remain bullish as long as 4.351 minor support holds. Above 5.120 will bring resumption of whole rise form 2.409 and should target 38.2% retracement of 13.64 to 2.409 at 6.7 next. However, considering bearish divergence condition in 4 hours MACD, break of 4.351 will indicate that a short term top is formed and will bring deeper pull back instead.

In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. The whole consolidation might have completed at 2.409 after meeting 100% projection of 15.78 to 4.593 from 13.69 at 2.50. We'll prefer the bullish case as long 55 days EMA (now at 3.94 holds) and expect the current rise from 2.409 to extend further to 61.8% retracement of 13.64 to 2.409 at 9.38 in medium term.....Natural Gas Charts.

Mid-Week UNG & USO Trading Charts

Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. While I continue to stay long, taking some money off the table to lock in profits is a safe play.

Just from a quick glance at the charts we can tell the odds are pointing to some type of pause or pullback in the coming days. I figure any day now we could see some profit taking.

Natural Gas ETF Trading – UNG
The Natural Gas ETF sure has given everyone a wild ride in the past 6 months. The bear market is still in place which can be seen on the daily chart. So far this week the price has broken down and trading at the $11 support level. This fund could generate a buy or sell signal with my trading model in the coming days so I am waiting for a clear entry and exit point before jumping on the gas wagon.


Crude Oil ETF Trading – USO
The Crude Oil ETF has broken above its resistance trend line this week but still struggling to move above the August high. Volume is declining while the price rises which is a bearish indicator. USO looks ready for some type of a pullback as it digests this breakout before moving higher.


Mid-Week ETF Trading Report
What does the general public hear and think about the stock market?
From recent emails, local financial news shows, family, friends etc… all I am hearing is how strong the market is. Indexes are making new yearly highs and company earnings are better than expected this quarter. Sounds like all we need to do is buy and life will be great!

Well in my opinion the market is the perfect tool for misguiding and frustrating the general public. All my indicators are telling me we need more of a correction before rallying much higher. The market (smart money) generally anticipates good and bad news several weeks if not a month in advance. So the question is:

Are company earnings already priced into the market?

Is all this positive market coverage getting the general public to buy up here at this possible market top? The answer is, only time will tell. No one knows for sure what the market is going to do but short term moves can be predicted with relatively high accuracy.

Don’t get me wrong, I am still bullish on the market but with all this good news becoming public information you have to wonder what is next. I am still long the market but trimming my positions to lock in profits and still stay in the game.

If you would like to receive Chris Vermeulen's free weekly trading analysis please visit his trading website The Gold and Oil Guy.

Oil Closes Near Session High, Hits New Seven Week High

Crude oil closed up $1.05 at $75.20 a barrel today. Prices closed nearer the session high today and hit a fresh seven week high. A lower U.S. dollar boosted crude oil again today. Crude bulls have the solid overall near term technical advantage. Prices are in a three week old uptrend on the daily bar chart.

Natural gas closed down 14.2 cents at $4.446 today. Prices again closed nearer the session low today. Bulls faded again today and need to show fresh power soon. The next upside price objective for the bulls is closing prices above solid technical resistance at the August high of $5.133.

Heating oil closed up 192 points at $1.9426 today. Prices closed nearer the session high today and hit another fresh six week high. Bulls have the near term technical advantage.

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Unleaded gasoline (RBOB) closed up 266 points at $1.8584 today. Prices closed nearer the session high today and hit a fresh four week high. Bulls have the near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at the September high of $1.8736.

The U.S. dollar index closed down 54 points at 75.63 today. Prices closed nearer the session low today and hit another fresh contract low. Same story: Bears still have the solid overall near term technical advantage. Bulls' next upside price objective is to close prices above solid technical resistance at 78.00.

Deciphering Current Natural Gas Market Data

In the last six weeks natural gas futures prices have jumped from a modern day low to nearly $5 per thousand cubic foot (Mcf) as commodity traders and investors started to cover their short positions in this fuel as the days moved closer to the beginning of the winter heating season. The jump in the gas price ends what has been an extended price slide that started back in summer of 2008 when prices were in excess of $13 per Mcf and early signs of the developing global recession emerged.

The jump in the gas price ends what has been an extended price slide that started back in summer of 2008....


The traders and investors who have been covering their negative bets on natural gas prices have been motivated by signs the nascent U.S. economic recovery is gathering strength, especially among sectors such as automobiles and home construction that are large consumers of natural gas and its components as feedstocks for petrochemical materials. Additionally, there.....read the entire article.

New Video: Where is Crude Oil Headed and How Will it Effect The Market

No surprise, interest in crude oil has spiked this week. And part of that may have come from the crude oil alert that we put here on our blog on October 12.

What is interesting about crude oil is the fact that seasonally, it should be going down. However, the market appears to be doing just the opposite. We have written about this before and when something is supposed to happen and the opposite occurs, it’s time to pay attention.

What was also interesting in crude oil is the fact that all of our “Trade Triangles” are all green giving a perfect 100% Chart Analysis score. This indicates that there are some strong trends in place and the odds are that the market should go higher. However, this is not a guarantee and all trades should be managed with stops.

In our new short video, we show some levels that crude oil could potentially go to. I also indicate a key level that many professional traders are watching and if this level is broken, it will certainly be a game changer that could effect the markets.

Just Click Here to watch the new video, and as always this video is free to view and there are no registration requirements. The one request we have is that you leave a comment about your thoughts on crude oil.

Bloomberg, Jakob Says: Oil’s Rally May Halt at $78.40

Crude oil’s rise beyond the one year high reached today may be checked by a resistance level first encountered three years ago, according to technical analysis by consultants Petromatrix GmbH. Crude climbed to $75.15 a barrel in New York today, its highest price since last October. The rally may dissipate as it approaches $78.40, the highest price reached in 2006, the energy consultant said. The likelihood of crude breaking this threshold will be determined by movements in the U.S. dollar, it added.

“This stands out as the next resistance level,” Petromatrix Managing Director Olivier Jakob said in an interview from Zug, Switzerland. “It was the high in 2006, and also strong resistance in 2007. When it was broken in 2007, crude moved to the next level, which was $100.” Oil rose to a then record of $78.40 a barrel on July 14, 2006 as conflict between Israel and Hezbollah stoked concern Middle East crude exports might be disrupted. In 2007, seven months of price gains snapped after oil reached $78.77 on Aug. 1, and the commodity lost about $9 during the rest of that month before resuming its upward path.....read the entire article.