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Equities, Gold, Silver
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by Chris Vermeulen
The broad market has been moving
higher with great force the past 2 months. I have been expecting a top for the
past 2-3 weeks. It looks like the market is starting to come in (sell off).
Few quick points which I think are
Gold started to sell off
about 10 days before equities rallied as money was pulled from the golden safe
haven and rotated back into stocks. Now gold is moving higher and the broad
market is starting to roll over.
I find the broad market
moves in 6-8 week cycles and it looks like the market peaked last week (week
Looks like we had some
capitulation volume during the top last week and big selling again today as
equities tested the high.
Trading inverse etf
funds I find are the best way to take advantage of this possible setup.
Members will be able to profit from the lowest risk setup I can find.
The Gold Sector
Gold had a nice move higher today
with fears of inflation, the broad market correcting and the USD which is
dropping like a rock. I have provided a few charts to help you get a better view
of whatís happening and how I see things.
The Bullish Percent Index of Gold
This chart tells us the percentage
of gold mining stocks which are currently on a point and figure buy signal.
Currently 80% of gold stocks are in a bullish chart pattern and the good news is
that we can still see this chart move to the 90 and even 100 level.
I like to watch this chart for short
term over bought or over sold levels which occurs when this chart is in the Wave
Top or Wave Bottom Zones. This allows me to tighten my stops to lock in short
Gold Stocks Price Action
As you can see from the chart below,
gold stocks broke out of their trend channel this week. It will be exciting to
watch and see what happens over the next few days. This type of price action is
what the broad market did in March and April. As prices break through the top
trend line we could very well see a jump in prices as investors panic and buy
into gold stocks so they do not miss the next move.
Gold GLD Active Trading Chart
Gold looks like it wants to run
higher but it will find resistance at the upper channel trend line. If this
price level is breached then I think we will see gold surge much higher.
Weekly View of Gold
Here is a quick look at the weekly
chart of gold. It shows that prices may take a few months for gold to retest the
$1000 level if the trend continues higher. The large reverse head and shoulders
pattern looks very promising for higher prices as well.
Weekly Silver Active Trading Chart
This chart clearly shows the
potential that silver has over the next few months.
Crude Oil Active Trading Ė Weekly
Crude oil made a new 6 month high
this week. Money has been flowing into commodities the past couple weeks as
traders and investors try to protect them selves from the over bought equities
market. This weekly chart and really most weekly charts generate clean buy and
sell breakout signals.
TheGoldAndOilGuy Trading Conclusion:
I think gold and silver will do very
well over the next couple weeks. Depending on how strong the pullback is for
equities it will play a roll in the price of precious metals. If we get a really
strong reversal and rally then I donít think gold and silver will do as well.
Looking at oil itís more difficult
to say what could happen. If the equities market drops fast then I think it will
pull oil with it as investors lose confidence and oil demand will continue to
We have some very exciting
opportunities ahead of us and its important that we keep our risk low while
taking advantage of current market swings using stocks, etfís and commodities.
My focus is to keep overall risk under 3% for all my trades and to add to
winning position and cut losses quickly.
If you would like to receive my
trading reports please visit my website:
Vermeulen is Founder of the popular trading site
There he shares his highly successful, low-risk trading method. For 6 years
Chris has been a leader in teaching others to skillfully trade in gold, oil, and
silver in both bull and bear markets. Subscribers to his service depend on
Chris' uniquely consistent investment opportunities that carry exceptionally low
risk and high return. Reach Chris at: Chris [at] theGoldAndOilGuy [dot] com
This article is
intended solely for information purposes. The opinions are those of the author
only. Please conduct further research and consult your financial advisor before
making any investment/trading decision. No responsibility can be accepted for
losses that may result as a consequence of trading on the basis of this