Search Precious Metal, Mining
and Financial News
Gold, Silver, Oil, Nat
Gas with a Technical Melt Down
by Chris Vermeulen
What a week so far!
Everything is playing out exactly as
we hoped and expected this week. We have been so close to a buy signal in gold
and silver but Monday’s intraday observations saved us from a nasty trade.
Those of you in love with oil just
had a Kiss Good Bye! Better PUT some love letters together J pardon the pun.
Natural Gas is all bottled up. Can
you smell that?
Gold ETF Trading – Gold Bullion
As mentioned in the last couple
reports we are currently waiting for a correction which will hopefully provides
us with a low risk entry point. Since June we have been in a short term down
trend, but the longer term trend is still up. Which is why we are looking for a
buy signal and not a short. The past couple days we have seen gold and silver
Looks like big floor traders are
“running the stops” which is when the majority of the public is trading all in
one direction (up) and the floor traders manipulate prices to trigger peoples
stop orders and shake them out of the trade before continuing in the direction
of the overall longer trend. This is explained in my Trading Manual for exiting
trades for maximum profits, avoiding the floor traders from running your stops
and how to take advantage of it report. This will all be explained once I have
that report completely written. It is the one thing most traders don’t know, yet
is the most crucial knowledge to trade with.
Anyways, for gold and silver we
could see more downside but until the selling dissipates we will wait.
HUI Index – Gold Stock Index
In short, on Monday when gold and
silver moved higher on weak intraday price action, gold stocks moved lower
telling me smart money was unloading before bullion tanks. This goes to show how
much attention should be made when trading. I know so many people went long gold
Monday only to take a beating every day since. This is what I like to avoid.
Silver ETF Trading – Silver Bullion
Silver is in the same boat at gold.
Popped higher on Monday as novice traders get sucked in and spit out a day or
two later. The worst part is that PM’s could and should reverse soon and move
higher. This is what frustrates people immensely. The average trader is normally
right but at the wrong time. Getting shaken out of a trade only to see it
reverse and continue in the direction you were ready for.
Natural Gas ETF Trading – Natural
Gas Price Action – Weekly Chart
Natural gas stinks, not much to say
here in my opinion. I think it is way over sold and do not want to short it. I
would rather wait for a breakout and low risk buy setup.
Crude Oil ETF Trading – Crude Oil
Price Action – Daily Chart
This is the same chart I posted last
week of crude oil. Simple breakdown and retest of both support trend line
resistance (The Kiss Good Bye!), and blue high lighted zone on the chart. Saw it
coming and was planning on using DTO for a nice bear play but prices just ran
not providing a low risk entry point. Great for day traders thought!
Overall I am still bullish on oil,
but this just had a feel to it that selling was about to step in for a quick
down draft. This is a high spec trade and would only last 1-3 days most likely
for a quick gain if taken.
Overall it’s been a great week. Our
golden rocket stock picks are up, and we are getting the pullback in price for
gold and silver which will hopefully provide us with a low risk entry point
The energy sector is nothing special
in my eyes technically speaking. Those of you who entered the market in Feb &
March with me using XTR.TO energy dividend fund should be happy as we all
received our quarterly dividend payments of 4%. With the energy sector currently
on edge it could be a good idea to put in a small hedge against our long term
dividend energy play here. Using a leveraged bear energy fund works well for the
short term like HED.TO. Just a small position to counter balance movement of the
long position. I like to hedge some of the long position so that if I am wrong
and prices continue higher then my long position will still make money. But if I
am correct and the market moves lower, my hedge will rise and cover most (not
all) of my losses from my long position. The dividends cover the balance.
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