|
Precious Metals and Energy Gone Wild! |
Precious Metals ETF have gone wild the past 2
weeks. Last week we saw gold and silver prices drop sharply as it shook
out short term trader’s stop orders before breaking out and moving
higher. Also there is a disconnect between the gold and the dollar.
Energy commodities like natural gas and crude
oil are moving in opposite directions and look to be picking up speed.
Natural gas is losing pressure and oil is on fire.
GLD ETF Trading – Pivot Trading Low
Last week we had our pivot trading low generate another buy signal for
gold. Trading pivot lows is a simple trading strategy. I call them low
risk setups and take advantage of buying a stock, commodity or currency
after a pullback to support and when a reversal candle is formed. This
chart clearly shows when you are trading with the trend buying on the
dips is generally a low risk play with great up side potential.
Precious Metals ETF Trading – Gold Bullion
Takes Control
This is a chart which shows the performance of gold stocks (red), silver
bullion (blue) and gold bullion (green). As you can see the past 2 weeks
while the market has been selling down precious metals stocks have been
hit harder than silver and gold.
Because of the heavy selling in stocks
recently the smart money had been going into commodities especially gold
bullion. Gold stocks are a great play but this is telling us investors
feel safer in physical bullion than stocks.
Gold is the most known precious metal and safe
haven which is why it’s holding value better than silver and stocks.
This week we are seeing gold become more valuable in several major
currencies which means gold is actually making a real move higher.
USO ETF Trading – Breakout & Bull Flag
Crude oil has had some great breakouts this year and it looks like we
are about to get another buy signal shortly. We had a breakout in Oct
from the large pennant and are now flagging which is very bullish. We
could see USO reach $50 in the next month or two.
UNG ETF Trading – Pivot Low or Waterfall
Sell Off?
Natural gas is at a crucial level for a higher low bounce or another
massive panic sell off. Trading right now with UNG is a 50/50 shot so we
will just have to wait and let things unfold more before taking any
action.
The Stock Markets, Precious Metals & Energy
Trading Conclusion:
The market is starting to feel a little squirmy as it tries to find
support. Small cap stocks continue to get crushed while blue chip (large
cap) stocks are holding more of their value. Gold has broken higher this
week while silver and precious metal stocks under perform their big
sister Yellow Gold.
Crude oil is holding up nicely forming a 3
week bull flag and showing signs of life while natural gas continues to
get hammered.
The market has been jumpy the past 2 weeks
because market participants are very uneasy about the future direction
of the US dollar.
If you would like to receive these free
trading reports visit my website:
www.GoldAndOilGuy.com
Chris Vermeulen
