Gold ETF Trading The Gold ETF Experience
Gold etf price action in the past 5 months has frustrated many traders. Especially those who have difficulty making money during consolidation periods which are in. The past couple months are consistently the weaker months for gold prices year after year. That being said August through year end have been consistently strong for trading gold and gold ETFs.
Gold spot price, you will see that gold found support at the 50 exponential moving average and also found major support at the 200 ema. August is just around the corner when gold generally picks up steam
Gold at support levels and entering August
The collapsing dollar looks to be struggling at resistance and making a lower high and lower low (bear trend). If the USD breaks down it should slide to the 67 cent level and send gold soaring for 2-3 months.
A close up chart of the USD, its currently at the top of its bollinger bands and just made a lower low 2 weeks ago. Head and shoulders anyone.
GLD gold etf is my trading vehicle of choice and is currently at support making higher highs and higher lows (bull trend). While this does not provide a buy signal with my daily trading model, it does provide an excellent trading opportunity for an intraday trade as we should see prices make a move much higher or much lower within the next couple days.
GLD gold etf is poised for a move, does not matter which way at this point thought.
Recent gold etf trade. My focus for short term trading is simple. Wait for a breakout which satisfies my trading model, enter the trade and then exit 50% of position on the first sign of weakness. Exit second half on a trend line break. My goal for GLD ETF is 2-5% and we are in trades for 2-10 days unless prices continue to run. I generally have 10-20 trades per year with gold.
My recent gold ETF trade which profited 3.4% with very little down side risk during a sideways market.
GLD trading for me is the most accurate trading vehicle I have come across. I have been using my proven trading model which avoids the price gaps and keeps risk for each traded under 3%.
Gold ETF funds makes it simple to profit from the markets using a proven trading model for trading long, and short term gold setups.
Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. TheGoldAndOilGuy.com
Gold ETF Trading Signals And Education for Beginner Traders
Gold etf trading signals allows beginner traders to taking advantage of the gold market using the GLD exchange traded fund to generate consistent profits in any market condition.
As I mentioned before, the past 5 months have been very frustrating for most traders as we are stuck in this sideways price action. I also noted that August to December is generally the stronger months for gold. Although gold has been under selling pressure during the last 4 weeks I think there is light at the end of the tunnel. Its usually the darkest before dawn, but there are some hurtles for gold to over come before we are in the clear which I explain below.
1 The Gold Mining Stocks Index
An 10 year chart with a cup and handle pattern complete with a breakout. Gold mining stocks have continued to collapse below their support level. This does not mean gold is going to follow but it is a red flag which needs to be noted for future long entry points. Gold mining stocks in general are seen as volatile and high risk types of investments so I understand why investors are unloading their positions to lock in profits. Gold mining stocks are pushed below long term support level.
2 Gold Stocks Index
An 8yr chart of the price action of gold stocks and you can see that they are currently testing long term support levels. If this monthly bar closes below this trend line then long term investors should be sitting in cash until we have a new opportunity to enter long or short. The HUI generally makes the move before the price of gold so I follow the HUI in all time frames. The HUI is testing long term support.
3 Performance Chart (Gold Stocks vs Price of Gold)
The past 2 years, from 2006 to present gold stocks have slowly been underperforming the price of gold. This is generally not a good thing to see if we want higher prices for gold. But the good news is that gold stocks appear to be reaching levels at which new rallies have started. Gold stocks under performing the price of gold but near support.
4 Daily HUI Chart
I follow the HUI like a hawk as it fine tunes my entry and exit point for trading GLD, DGP and DZZ funds. Last month the HUI made a lower high and a lower low which is a red flag. While I dont predict prices I am thinking these lower prices for gold stocks are just panic sellers over extending a sell off. I would really like to see an August rally kick into place. The HUI makes a lower high and lower low on the daily chart.
5 GLD Gold ETF Chart
While gold stocks have been selling down, gold has so far been able to hold some ground. As you can see in the chart below the last three months gold has made higher highs, and higher lows. Currently gold is testing Major Support at the 200 EMA. Gold ETF GLD at long term support still holding its ground.
Conclusion:
My analysis of gold above explains that gold stocks and indexes are oversold and are at major support levels. Thus an August rally is not out of the picture and we could have some favorable setups in the near future. I would prefer higher prices, but in the end movement is movement and we can profit in either direction evenly.
GLD gold etf trading for me is the most accurate trading vehicle I have come across. I have been using my proven trading model which avoids the price gaps and keeps risk under 3% for each trade. GLD makes it simple to profit from the markets using a proven trading model for trading long and short term gold setups in all market conditions (bull, bear, and sideways).
My focus for short term trading is simple. Wait for a breakout which satisfies my trading model, enter the trade and then exit 50% of position on the first sign of weakness. Exit second half on a trend line break. My goal for GLD ETF is 2-5% and we are in trades for 2-10 days unless prices continue to run. I generally have 10-20 trades per year with gold.
Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. www.TheGoldAndOilGuy.com
Gold, Silver And Oil Trading Expert Helps Investors Learn The Ropes
Often the conventional wisdom is to stay invested in the stock market and in real estate. But millions of investors following that often-touted strategy have seen their portfolios drop by half or more.
“Investors everywhere have had it with staying the course only to see their life savings disappear. That’s one of the key reasons highly profitable gold and oil are becoming the investor’s choice for the 21st century,” said Chris Vermeulen.
He provides traders with free unparalleled gold, oil and silver trading analysis, signals and 24/7 trading email support.
Unlike other sites, Vermeulen is a one man operation. He personally develops all his information, and then makes himself available to individually assist subscribers. “I don’t want an employee handing out advice while I’m travelling Europe,” Vermeulen said with a smile.
While this is not exactly an educational piece for trading gold it does provide the information which traders need to find out how to traded the market not matter if its the tech, energy or the precious metal sector. Knowing how to find low risk opportunities which maximum potential is the key to successful trading.
The service is designed for active traders who insist on a conservative approach to investing. He uses the GLD gold exchange which allows for very accurate signals when used along with the price of gold, HUI [AMEX Gold Bugs Index], USD and gold stocks price action. “Over the years I’ve found these factors used with expert analysis deliver extremely impressive yields,” Vermeulen said.
But perhaps best of all, Vermeulen’s strategy is clear and simple to learn and use. “My strategy makes your trades extremely accurate with very little downside risk,” he said.
In the current business climate where investors are quite enthusiastic about trading gold and oil, it is easy for trading advisory services to advance very risky recommendations. Unfortunately many of their subscribers lose big.
“I insist on moving conservatively. My subscribers make 8 to 12 trades per year with very little downside risk. But the potential is tremendous,” Vermeulen pointed out.
Vermeulen began trading gold and oil a decade ago, gradually refining his trading methods to achieve remarkable results. “Now that gold and oil are the hottest investment available, traders have to be careful they aren’t getting advice from someone who just recently got into the game. Gold and oil is not a get rich quick path for those who aren’t willing to use a sound method and analysis,” he said.
While Chris provides free help via mail his website website features a free preview of the service, complete details about Vermeulen’s trading model, his impressive track record, and a library of free reports and information to help investors navigate the gold, oil and silver market.
Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. TheGoldAndOilGuy.com
How to Trade Natural Gas, Crude Oil & Gold ETFs
How to trade hot commodities like natural gas, oil and gold – We should see big moves in the coming weeks as gas bottoms, and oil & gold breakout or breakdown. A lot of money is going to be exchanging hands quickly and the key is to be on the receiving end of things. Below are some charts showing where these commodities are trading.
How to Trade Gold Weekly Chart
How I trade gold is relatively straight forward. I use a simple trading model which allows me to identify the down side risk for a potential gold trade. I also use the same model for trading oil, gas and silver.
Beyond finding good entry points, it is crucial to know when to take some profits off the table. The weekly gold chart clearly shows gold trading at a resistance level which means there are going to be more sellers than buyers, hence the reason it is called resistance.
To trade gold I enter with my low risk entry points and sell half my position once I reach a resistance level. Today for example gold moved up into this long term resistance level and then started to head south. We took some profits off the table before gold dipped in the late afternoon for a healthy gain. Taking profits is a must or you will simply hold onto winning positions until they eventually turn into a loser.
How to Trade Crude Oil Weekly Chart
Trading crude oil is exciting because it moves much faster than gold. How to trade crude oil with low risk can be done by using my simple trading model which is a combination of indicators like momentum, support & resistance, volume, price patterns and media coverage. All these things combined allow for highly accurate trades with minimal down side risk.
Crude oil looks ready to make a big move. The odds are pointing to higher prices because oil has a multi month bullish price action and the falling US dollar helps increase the price of oil. I can see oil breakout and rally into the $95 per barrel level if things go that way in the coming weeks.
How to Trade Oil (USO Fund) Weekly Chart
USO tracks similarly to the price of crude oil and it provides some great trades for both swing traders and day traders. I focus on trades that bounce off support with low downside risks, which occur on both the daily and weekly charts.
How to Trade Natural Gas Weekly Chart
Natural gas is looking ready to bottom here. If you go back to the early 1990s the $2-3 range is a major support level. While I don’t generally try to pick bottoms, there are some signature price patterns and volume patterns that have proven to be very profitable for catching sharp bounces.
How to Trade Natural Gas Daily Chart
The daily chart shows a perfect waterfall sell off with the price of natural gas dropping to a long term support level. This pattern combination shows panic selling which indicates a short term bottom is close.
The extreme panic selling and sharp decline in price, removes much of the down side risk. Scaling into a position over a few days, if the price continues to move lower, is important for this strategy to work its magic.
The black horizontal lines show my resistance levels for taking profits. If the price were to drop below $10 then I would exit the second half of the position to lock in the rest of the profit.
How to Trade Commodities Conclusion:
Trading commodities is very simple with all the ETFs and funds available. The energy funds like oil and gas have some issues with following the prices of their underlying commodity but I do not find it a problem with my style of trading.
I would really like to know the entire story about what is going on with the oil and nat gas funds which have crazy contango issues??? Why do other commodity funds like GLD (gold bullion) and SLV (silver bullion) not have these issues?? Why cant they make a fund which follows oil and gas properly? All I know is that there are a lot of dishonest people in the financial industry taking honest hard working peoples money.
Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. www.TheGoldAndOilGuy.com
Gold Investment Fundamentals and the Transfer of Capital
The Secular Bull Market in Gold Investments corresponds directly to the Secular Bear Market in Financials. We explain why this trend will continue and why a short-term buying opportunity in Gold presents itself.
Central Banks are in all sorts of a pickle.
With overwhelming evidence that the global economy is slumping badly:
* UK Retail Sales see Worst Slump in 20 Years
* Business confidence in Germany is at lowest level in 2 years
* New Zealand’s central bank cutting interest rates saying slowing economic growth will curb inflation.
* Japanese exports decreasing YoY, and imports climbing on record Oil prices.
* US unemployment at 4-year highs
The knee jerk reaction by central banks is to man the printing presses and hit the accelerator. And whilst this medicine has worked well over the last 25 years, Central Banks are now hitting a brick wall that they havent encountered since pre-Keynesian 1930s.
Freshly minted fiat currency is falling into the hands of a crippled banking sector with little capital, ability or desire to carry out the multiplier effect and make loans to real people in the real economy. In a debt laden global economy with no reverse gear this headwind is possibly the biggest threat the Federal Reserve and its ilk aka the establishment have ever faced in carrying out monetary policy
Point #1 Gold investors are well aware of the risks inherent in the current financial system.
The beauty of capitalism and the associated free movement of capital is that smaller more focused entities aka Hedge & Private Equity funds can and are rapidly moving into long held banking preserves.
* Direct lending to mid and small cap entities is now a well worn hedge fund territory.
* Extracting value through Shareholder activism.
* A much larger pool of capital available for short selling.
* Private Equity funds increase investment time horizons.
Highly secretive and operating out of non-transparent domiciles these entities are by and large out of the reach of the central banking system.
Point #2 Hedge Funds and Private Equity Funds do not benefit from Fed handouts and would be better served by a currency that acts as a stable store of wealth: Gold!
The transfer of the financial system is akin to the explosion of information on the internet. The players that used to have a monopoly on information become less effective. There will be winners and there will be losers. But right now a bet on Gold Investments like Gold Stocks and Gold ETFs is a bet against the Establishment and the out-dated mega-banking system.
Slower growth will continue to cause problems for financials as bad debts soar, and as a result Gold investments will continue to propel higher in its multi-year Secular trend.
Short-Term Opportunity
The above trend stretched too far technically over the last 3-months and there has had a rapid reversal over the last 2 weeks. This is a technical pullback only and the above fundamentals have not changed. Theres more to come in this fundamental story and Gold investments (we use GLD gold Exchange Traded Fund) and we could be getting close to another buying point for gold soon
Gold Investment GLD Fund Prices – $85 is strong support as a confluence of lateral support and the 50-week Moving Average converge. Its just a matter of time before we have another entry point to add to our positions and or make another profitable gold investment.
Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. www.TheGoldAndOilGuy.com