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Active Trader Update
for Gold, Silver & Oil
by Chris Vermeulen
This has been a volatile week for
the market. Equities sold off Wednesday pulling precious metals stocks with it.
Crude oil had a small pullback but energy stocks took a beating.
Gold & Silver Short Term Outlook
Precious metals equities pulled back
today for a couple reasons in my opinion.
-
They are currently at resistance
and the upper level of the channel
-
The broad market sold off big
today and that put some pressure on PM equities
I expect we will see some type of
pullback which could last 1-2 weeks and at that point let’s hope precious metals
rally higher.
Gold Precious Metal Stocks Index –
Daily Active Trading Signals

Gold GLD Exchange Traded Fund –
Daily Active Trading Signals

Silver SLV Exchange Trade Fund –
Daily Active Trading Signals

Crude Oil Trading - Short Term
Outlook
Energy stocks have performed very
well but now look to be extremely over bought with over 90% of energy stocks
having a bullish point and figure chart. I expect we will see some type of
pullback here which could last 5-20 days depending on the speed of the
pause/correction in prices. Looks like energy stocks could easily fall back to
the 50% mark on the bullish percent chart.
Energy Bullish Percent Index – Daily
Chart

XLE Energy Fund – Active Trading
Signals

Crude Oil Analysis

Active Trading Conclusion:
Gold and silver in my opinion should
be moving higher because the broad market is so over bought and looks like it’s
about to have a sharp correction. Money has been slowly moving into gold and
silver the past 2 weeks. If the broad market continues to sell off here we could
see gold prices rise nicely and retest the $1000 mark.
We don’t really know how bad the
economy really is and if this is just a bear market rally then we could be in
for some trouble. I don’t think this is the case but it’s always a good idea
know what could happen. If the economy is about to crash it would demand large
amounts of money to be pulled from the market and used to fund business and
individuals living needs. This means that banks, investment firms and long term
investors will start to draw their investments which would include equities,
gold, silver, oil etc… pulling all investments down. I don’t really like to
think about this but I like to know what could happen so that I can take
advantage of market moves going both ways (up and down).
That being said it looks like the
market is ready for a pause or correction before it’s ready to continue the
rally. Short term traders should be locking in some profits.
If you would like to receive my
trading reports please visit my website:
www.TheGoldAndOilGuy.com
Chris Vermeulen
Chris
Vermeulen is Founder of the popular trading site
www.TheGoldAndOilGuy.com.
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
analysis.
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