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Showing posts with label Silver. Show all posts
Showing posts with label Silver. Show all posts

Wednesday, December 14, 2011

How to Trade Gold, Silver, Oil and Natural Gas ETF Funds


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.

Gold ETF Trading - GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading - SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

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 GLD, SLV, UNG, USO 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.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Tuesday, December 13, 2011

Trading Gold and Silver - When and Why to Buy Gold and Silver


In times of economic and political uncertainty traders are often advised to invest in gold and silver - the Precious Metals. But is this the right thing to do? Historically, investing in gold, silver or platinum was seen as a sure-fire way of protecting your wealth against the fluctuations in the economy during periods of political unrest or economic down turn. Gold still holds a special place in people's hearts as a means of 'storing' wealth during an economic crisis. However a closer look at the markets shows that buying gold during a financial crisis is not in fact the best option for people looking for a return on their investment. Indeed the smart investor only needs to take a look at the relationship between the gold and silver markets and the US dollar to spot the problem. Over the past 35 years there has been an inverse relationship between the value of the US dollar and these precious metals. Put simply, the price of gold rises when the US dollar falls.
The price of gold rises during political unrest as people flood the market wanting to protect their assets, but it falls when a financial crisis actually hits and the smart money heads for the safety of US Government bonds and hence buying the US dollar. Therefore gold is not the safe haven it is thought to be during a financial crisis. In fact comparisons of the S&P500 index and the gold market has shown that while the price of gold may rise in times of economic and political instability, driven by people opting for the 'safe' option, so too can the S&P500 index. For example in 1979 gold rose from $1,042 at the beginning of the year to $1646 by January 1980. During the same time the S&P500 index rose from 97 to 117. This was during a period when we had the Iranian revolution, the US embassy hostage drama in Tehran, the Soviet invasion of Afghanistan, a second oil crisis and subsequent high inflation, and political turmoil in the UK. When the stock market dropped by 19% at the beginning of 1980, so too did gold - falling 30% during that year. So investing in gold during times of political uncertainty is no better or worse than investing in the S&P500 index.trading.com
During the 1990s, in the wave of the technology boom, people invested in US companies rather than the gold market. This increased the value of the US dollar but had a negative impact on the price of gold. Then, when the technology markets crashed, and the US Federal Reserve lowered interest rates to zero, the price of gold started to rise. It continued to rise as the US dollar was further devalued when the US government started deficit spending and waging a series of expensive wars. In fact the largest trends in the gold and silver markets have been a decline since 1980 (when the economy was booming) until 2001, followed by a continuous rally as the Government has struggled to reduce its deficit and curb its spending.
Another consideration when dealing in the Precious Metals market is that although the prices of gold, silver and platinum are usually strongly correlated and move together, occasionally gaps appear. For example platinum had a huge rally in 2008 and silver fell behind gold in 2010. Despite these fluctuations the markets will usually stabilize and synchronize eventually.
The best way to make the most of your investment capital is to buy gold (or silver) when there is intense political and economic uncertainty. But as soon as the financial crisis actually hits, move out of gold and into the US dollar. Remember to always keep your trading capital to the strongest possible currency. It is worth tracking all the major currencies, including the Euro, the Australian Dollar, British Pound, Swiss Franc, Singapore Dollar and Canadian dollar, so you pick the strongest currency for your base trading capital. Whether you are trading gold and silver or not, tracking the weekly commitment of traders data will give you an overall picture of the strength of the US dollar and therefore the best opportunities for investment during a financial crisis.etrad.com

Wednesday, November 23, 2011

Can gold save the eurozone?

NEW YORK (CNNMoney) - No end to the debt crisis in the euro zone in sight, there is no end in workflow solutions. The latter involves the use of gold as collateral.
The euro area central banks make up about 64% of the world's gold reserves, which havethe weight back.newyorknews.com
And it earlier, but was largely EUR before. It is therefore clear that the legal obstacles canbe overcome in order to meet all of the 17 euro countries.
But under the assumption that these challenges can be overcome, experts consider a real win-win opportunity.
"Historically, it is not a land use gold as an unusual security," said Jeffrey Nichols, Managing Director of American Precious Metals Advisors in New York.
The idea of ​​using gold as collateral rumored part of a broader proposal by the EuropeanCommission said on Wednesday. Although the plan does not explicitly discuss theconcept of gold as collateral, the experts said it was a plausible scenario.cnn money.com

Friday, October 21, 2011

How to Trade Gold, Silver, Oil and Natural Gas ETF Funds


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.

Gold ETF Trading - GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading - SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

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 GLD, SLV, UNG, USO 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.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How to Trade Gold, Silver, Oil and Natural Gas ETF Funds


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.

Gold ETF Trading - GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading - SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

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 GLD, SLV, UNG, USO 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.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How to Trade Gold, Silver, Oil and Natural Gas ETF Funds


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.

Gold ETF Trading - GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading - SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

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 GLD, SLV, UNG, USO 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.




This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Thursday, October 20, 2011


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.
Gold ETF Trading - GLD
The Gold ETF is one of my favorite
trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading - SLV
The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

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 GLD, SLV, UNG, USO 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

Most of the developing countries measure their economy by the GDP and an internationally accepted currency is the United States Dollar. US Dollars are not necessarily the currency of normal use in a lot of the countries. All countries of the world need oil and coal for producing energy and thus to ensure faster development. The development is achieved through industrialization, industries run primarily on electricity. The electricity is produced in power stations which use either coal or gas or petroleum for driving the turbines which produce electricity. To purchase oil from the countries that produce oil, United States Dollar is the currency used. Thus all countries of the world need to have certain reserves of foreign exchange namely US Dollars, to ensure sustenance. Thus the countries carry out its international businesses in US Dollars. Thus every export order that is completed earns revenue for the country in US Dollars. The wealth of a country is also determined by the amount of the foreign exchange reserves that it has.
The exchange rate of US Dollar is determined by the gold reserves and the forex reserves the country has. The forex trading is categorized in different levels such as inter-bank market, this includes the dealers in securities and the commercial banks. Here the trading happens with the bid and ask prices of the currencies being traded. This also determines the exchange rate of the currency against other currencies. The inter-bank Forex Trading transactions account for almost 53% of the total transactions. The next level of players are those such as Pension Funds, Mutual Funds, etc. Central Banks of the countries also get involved in the Forex Trading. They do this inorder to control the money supply into the country also thus influencing the inflation and the bank interest rates. These national central banks also use the forex money to help stabilize the internal and international markets.
Most of the foreign exchange trading is speculative in nature. The speculative nature of this trading is kindled by the hedge funds operations that various multi-national organizations undertake. There are individuals who also get involved in this trading and they are called retail brokers. The Foreign exchange was greatly affected due to the introduction in the automated dealing systems, matching systems and the Internet trading. The dealing systems were mainly based on on-line computer systems in which the banks are linked to one-to-one basis. The matching systems are based on electronic brokers. These are very fast and very reliable too.