Are you Prepared To Currency exchange Trade?

Currency exchange dealing is the most popular method to generate to income and it’s without doubt a incredibly rewarding market. Even so few are familiar with its unpleasant intricacies and most ignore a extremely important element: possibility. It really is not adequate only to be offered the opportunity to invest your cash effectively, you have to be cautious since Currency exchange investing may be an effective exchanging program or it can ruin you. Why is Foreign currency investing risky?

- Foreign currency investing is really unstable. It could be the subject of rapid and overwhelming adjustments. The marketplace is volatile and it truly is influenced by political events. - One can loose at any time particularly when he has just ventured into Foreign currency dealing. Encounter, details and attention are needed. - Some unexpectedly loose the Risk Funds which at times consists of College money, the retirement resources or some other considerable sum that shouldn’t have been considered as Foreign currency dealing funds inside the initial site.- Fluctuations in foreign currency costs, discrepancies concerning interest rates in two diverse countries, insolvency of monetary institutions that consider part in transactions and limited flow of exotic currencies will almost certainly result in reduction.- Significant earnings and minimal losses are extremely hard to predict with 100% certainty.- The Foreign currency dealing market place has wonderful winning possible, nevertheless it also has reduction possible.  - Misinformation along with the emotional baggage are most on the time trigger of loss. Use details, not hope or concern, when Currency dealing.- From time to time trends can lead to funds reduction.- Substantial leverage is readily available to dealers. This leads to harmful positions that risk too a great deal in comparison with the size on the account. - Lacks of funds management and of back testing plans are the mistakes that currency dealers make often.- Using brokers is at times inefficient because this counterpart can refuse to trade during volatile market problems affecting the retail trader. They are able to even widen spreads. On the other hand it can be suggested to collaborate having a broker, since he can deal within the interbank marketplace and he surely understands more about Currency exchanging making it safer from other points of view.- Scams had been very common many years ago when dealing using a broker. Even so, 1 can be confident with the individual he’s working with by checking their background and the Organizations he is connected with (big banks, essential insurance businesses). Read about the Forex Automoney scam.

Do not be frightened! It isn’t all about risks. And do not start trading in anxiety! You will loose this way. You just should keep in mind all possibilities and stay clear of unwanted situations only you’ll be able to get your self into. All Currency dealers have to be very effectively informed about their activity. They have to learn technical analysis and tips on how to read and interpret charts, they have to develop effective techniques and minimize danger. The fiscal exposure has being limited and this might be carried out in many ways available to foreign currency traders who inform themselves. So, educate yourself, be prudent, carry dangers only when you can manage reduction and usually be ready for anything. And have this in mind: If Currency dealing is not worthwhile then why are so many financial investors, banks, international establishments and essential players that obtain substantial amounts of income by merely turning their personal dollars into other currencies?

How To Profit In The Europe Stock Market

Lets face it : we live in a globalized society ! And although we may consider ourselves American citizens, we’re also “citizens” of the new world. It is my contention that everyone need to be diversifying where possible, and participating on the Europe stock market represents a good alternative for doing so. On that subject , I offer these guidelines to help in reading Europe Stock Markets as easily as domestic stocks.

Point 1

It’s significant to infer that the term Europe Stock Market is a misnomer. In reality there is a incredible range of exchanges compared to the United States . One example is OMX, which is made up of Nordic and Baltic exchanges representing Sweden, Denmark, Finland, Iceland, Estonia, Latvia and Lithuania. Another is Euronext, which is headquartered in Paris and represents Belgium, France, Holland, Portugal and the United Kingdom. Euronext (to name another example) is the second biggest exchange in Europe, and aligned itself with the NYSE to create the first global exchange.

It is critical to know that most of the countries not encompassed by Euronext or OMX will have at least one domestic exchange of their own, and some countries may have multiple exchanges that are not part of a pan-European group. For example, while Euronext does operate in the United Kingdom, the important London Stock Exchange is not part of it. Germany, the single largest economy in Europe, is not a part of any pan-European exchange, and operates three clearly German exchanges: Deutsche Boerse, Eurex and the Frankfurt Stock Exchange. This can be a little confusing at first glint, but in reality it’s not too grueling to grasp. All you need to do is determine which countries are important to your interests, investigate their exchanges, and then focus on the exchanges that fit your criteria.

 

Point 2

Although there may be an incredible assortment of exchanges, its important to know that the verbiage used by individual European Stock Exchange indexes is nearly identical to its American counterpart. For example, there are company abbreviations, share prices, exchange composite levels and composite changes for the day. In addition, you’ll find that traders speak a similar technical nomenclature regardless of local dialect.

 

Point 3

Understand that like all foreign exchanges, Europe stock markets are denominated in foreign currency. You probably think that we refer to the Euro, but that’s not always the case. As you may know , The United Kingdom , Sweden and Denmark do not use the Euro. They have decided to retain their traditional currencies. And other key European states, such as Russia, exist outside the European Union altogether and of course maintain their own currencies.

 

Consider this:

The UK and Russia are 2 of the most critical economies in Europe, and Sweden includes such international companies as Volvo and Ikea.

Your Europe Stock Market plan should unquestionably include these countries, so make sure you monitor at least one, and potentially more, currency exchange rates to better understand the prices on a European stock market index, and this becomes even more critical if you want to compare and contrast between them.

I hope you enjoyed this article. Please don’t hesitate to browse the site:  USA Stock Market  for more illuminating info on the world of stock market investing.

Soybean Complex, Corn and Wheat Market Recap for 5/25/2010

Corn Commentary

July Corn finished down 6 3/4 at 364 1/4, 6 off the high and 1 3/4 up from the low. December Corn closed down 6 1/4 at 382 3/4. This was 2 1/2 up from the low and 5 3/4 off the high.

The corn, wheat and soybean markets moved largely in tandem today starting with weakness overnight and further selling to start the day session. This was followed by modest firming into mid session and a setback to near the middle third of the day’s trading range into the close. We have apparently seen the first example of the potential for disruption of shipping into the Gulf after an oil-stained tanker was detained upon entering the Mississippi River. No word yet as to what the cleanliness standards will be as more and more ships are forced to sail through contaminated waters before entering Gulf ports. Traders said that the sharp rise in the dollar and sharply lower crude oil and equity markets contributed to today’s weakness in corn. Forecasts of cooler weather across much of the Corn Belt, starting this weekend, and the possibility of scattered light rains across major growing areas during the first half of next week added to the negative tone. Some longer term forecasts call for moderate to heavy rains to move into the western and NW Corn Belt by Thursday of next week followed by more moderate totals in the central and SW Corn Belt into the end of next week. China’s latest weekly auction of corn reserves resulted in the sale of 939,600 tonnes out a total of 993,300 tonnes that were offered.

Wheat Recap

 July Wheat finished down 7 at 460 1/2, 6 1/4 off the high and 4 1/4 up from the low. December Wheat closed down 7 3/4 at 508 3/4. This was 3 3/4 up from the low and 6 3/4 off the high.

The July wheat contract moved lower overnight and then made a new contract low to start the day session. The market firmed into mid session with further gains extending into early afternoon. However, the July contract failed to reach yesterday’s close on the rally and the day culminated with a sharp sell off into the lower half of the day’s trading range. Today’s close marked a new contract low close for the July wheat contract. The hard red winter wheat harvest is underway in the southern Plains with harvest expected to reach the Northern High Plains of Texas in the next couple of weeks. Some areas in the Southern Low Plains of Texas were damaged by hail from recent thunderstorms. South Korea is looking to buy 45,000 to 55,000 tonnes of feed wheat. Tunisia is tendering to buy 100,000 tonnes of soft wheat with the sale expected to go to France. They are also looking to buy 25,000 tonnes of durum wheat.

Soybeans Commentary

July Soybeans finished down 10 at 930 1/2, 10 1/2 off the high and 3 up from the low. November Soybeans closed down 12 1/2 at 903. This was 3 up from the low and 12 1/2 off the high.

Soybeans traded lower throughout the day today against a backdrop of sharply lower crude oil and equities and a sharply higher dollar. Favorable crop weather also added to the negative tone. The July soybean contract attempted a mid-session rally, but this fell short of yesterday’s close and the market finished near the middle third of the day’s trading range. New crop November and December contracts and lost to the old crop July contracts in both the soybean and meal markets. The Gulf (export) market continues to see background support from expectations that rising prices in Brazil and Argentina will result in further shifting of export business from South America to the US. Light farmer selling is also helping to support cash markets in the US. However, favorable crop weather in the US is reinforcing ideas that this year’s US soybean yields could be higher than the USDA’s current projection of 42.9 bushels per acre. Last year’s US soybean yield was 44.0 bushels per acre under, cool, wet and nearly ideal conditions. One analyst noted that the cooler forecast for the coming weekend and into next week and the possibility of improved rainfall later next week was particularly favorable in that it would keep the current hot and relatively dry spell from lasting long enough to cause stress to recently planted soybean fields.

July Soymeal closed down 2.6 at 271.1. This was 1.1 up from the low and 3.3 off the high.

July Soybean Oil finished down 0.35 at 37.17, 0.32 off the high and 0.35 up from the low.

July Rice finished down 0.45 at 11.62, 0.03 off the high and 0.04 up  from the low.

July Oats closed down 7 1/2 at 191 1/2. This was equal to the low and 9 off the high.  

The daily commentaries provide a recap of any reports released that day, a recap of each commodity’s traded price activity, an analysis of the factors that influenced price activity, and a look ahead at the next day’s schedule.  Market commentaries for soybeans, corn, wheat, silver and gold are provided by CME Group.

We do not guarantee the accuracy of the information in the Market Commentaries, but we believe the information obtained is from reliable sources. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

This blog is reported by Andy Waldock.  Andy Waldock is a asset manager, trader, analyst and broker.  Therefore, Andy Waldock may have positions for himself, his family, or his clients in any market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity markets. The commodity markets employ a high degree of leverage and may not be suitable for all investors. There is considerable risk in investing in futures.

Intelligent Day Trading Rules And Plans

There are 3 basic pillars to trading: Psychological Factors, Risk Management and The Trading Strategy. Below are some day trading rules that bear noting.

One’s mental attitude has a large influence on day traders. One needs consistency in one’s mental attitude since the market is largely a random walk one needs to be devoid of prejudice and be flexible within their rule-set. There are times the market does set up to give you an edge and you must be mentally prepared to take advantage of it.

One needs to be willing to endure till the correct develops and then pounce on it. One has to wait till the exact interval and then act with certainty.

In this game, the ones who minimize their losses win.  You need to be disciplined and not violate any of your rules. Most of all, you need to back test in order to convince yourself that the rules work favorably.

One always need to protect their capital with a stop market order so to keep risk at a minimum. Pass on the trade if the risk is too large. One needs to simulate trade until they have all the mechanics figured out and can exercise smoothly.

One needs a calm environment to make non-emotional decisions in.  There is nothing like a clear head to enact emotionless decisions when trading. With a good grip on your emotions, you’ll be able to bounce back faster after a series of losing trades . One needs to develop the assurance to trade without emotion.

Keeping a log or diary with details of the how and why is a must. This is a way to hold yourself accountable. As the trade developed, not your feelings and thoughts. This is a kind of biofeedback that allows you to talk to yourself rationally and can be referred to.  You’ll get a birds-eye view of how the plan is working.

One needs a clear strategy and objective to back up against and to trade with. Trade with a set of rules that you can trust!  Keep a list of your day trade plans on index flash cards so you can review the method is if necessary before you make a trade. Back testing your plan  is vitally important. One needs to back test and have belief in oneself oneself that the strategy  is on target. Finding good day trader software may be helpful.

Money management rules need to be rigidly adhered to. Keep your risk at a 2% level per trade. Capital preservation is the number one rule and one doesn’t need risky temptations. Even if you lose 50% of your trades,  you can still make money with the right money management rules. 

Day trading can be a very enjoyable career. The people who make it in this business are the ones who are well balanced emotionally, have a good strategy and have a good money management system in place. Even a day trading stock tip may prove workable with the right theory.

Best and Worst Investments of 2010: Working Financing and You

People need money. Each of us all work hard for the funds we have, many individuals tend to convert and have their cash work for them. Maybe the easiest way of doing this can be by investing the income into some type of investments so that the income could increase. You can get lots of unique ways you could put your cash to operate for you, but it’s vital to complete a couple of things to assure the ideal feasible outcome. Retain these types of strategies in mind if you wish to succeed at all of your wealth creation efforts.

Maybe the initial thing that you should do, it doesn’t matter what, is research the different investments choices that are around for you. You are able to easily investigate various subjects online, such as the best and worst investments of 2010. By looking around online, you can find which options are earning the many return and which opportunities that you ought to stay clear of by any means. There are plenty of websites which format different rewards and disadvantages to many distinct tactics, and exactly how you are able to break into the arena. Make certain to take notes in this phase so you can rewind and review details down the road.

The next thing that you need to consider when you are considering investments is asking inquiries. Because the economic field is often baffling, it is beneficial you get answers to all of your issues before beginning the process. Having a broker on your side could make all the difference on earth with regards to determing the best methods for making money. Having the capacity to ask these inquiries will also save you from making pricey errors anywhere down the road as well.

Ultimately, it is essential you not make any trading selections with merely half of the info that you actually need. You will discover a pile of options and each of them might be confounding. Make sure that after you really take that final move, you do so with all the information about what you are carrying out. Making a knowledgeable selection can make the process simpler and easier and can help you rest straightforward at night. No sleepless evenings will pester you if you’re certain about the options that you’re making.

Regardless of what you ultimately choose to do, be certain to check out these tips and hints to invest correctly. The last thing that you need at this point in time will be to generate losses in lieu of making it. Attempting to keep these things in mind will let you make investments without having troubles, but overlooking these tips can only make your financial issues greater. Ultimately, take heed of this information and find out just how large you can make your finances grow.

Forex Mastery 2.0 And The M3 Forex Navigator Software Is The Ultimate Forex Trading System

If you have been following the fx news, than you need to take a look at the unusual video released by Joe Atkins a.k.a Forex Joe! Joe Atkins is a Texan sport bettor of 30 years who developed a unique sports betting system that was highly successful in making a fortune for him. A few years back, he discovered the world of forex . He immediately saw a number of similarities between sports betting and fx trading and decided to try his exact sports betting system in fx trading . Watch Forex Mastery 2.0 and the New M3 Forex Navigator Software preview videos just now. Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals. Download this powerful Forex Swing Trading End of Day Trading Kit (100 page PDF plus videos) FREE!

His system depends on certain Bias and Key Levels that can predict trend reversals in the forex market with laser like precision. Now, when he applied his mathematical sports betting formulas to forex trading, lo and behold, they worked like magic in the forex market too . Now something about the Forex Mastery Home Study Course and the M3 Forex Navigator Software! It took six years and hundreds of thousands of dollars in development costs plus analysis of hundreds of students in creating this Ultimate Forex Trading System !

Forex Mastery Home Study Course and the M3 Forex Navigator Software is indeed the Ultimate Forex Trading System! It uses proprietary indicators and a unique software for consistent success in the fx market. As I said before it uses Forex Joe’s unique Bias and Key Numbers. What are these numbers?

If you really want to take a look at the Forex Mastery System than you should watch the 6 preview videos and explain in detail how this Forex Trading System can be something life changing for you !

Long Term Trading: These Are The 5 Essentials For Success

Regardless of whether you are an experienced investor, or a brand new investor, you’ve probably asked yourself whether short term trading or long term trading is the best strategy.  The answer is that both could be an efficient method to buy and sell stocks.  However, all things being equal, my view is that long term trading should be given top consideration.  There are many reasons for my conclusion, that I now share with you:

Long Term Trading Tip #1. The Smoothing Out Of Price Fluctuations:

Volatility could be a painful fact of life for all traders, but particularly so for the short term trader. It is a fact that the marketplace will ultimately smooth out the factors that trigger these extreme, short term variances, provided sufficient time. Therefore, anyone knowledgeable with long term investing can discover respectable profits from stocks that were earlier liquidated (usually at a loss) by others. Over the long haul, very good stocks left behind by the short-termers out of panic or anxiety, often may prove to be winners, and eventually will pay better than average returns.  Here is the bottom line: Long-term trading experts, especially individuals who invest in a diversified portfolio, can survive, and ultimately succeed from down markets without drastically impacting their capability to attain their goals.

Long Term Trading Tip #2. Compounding:

You have heard the old proverb that time is the investor’s best pal.  Well, it is true!  The passage of time allows for compounding to work its magic. Compounding is the mathematical process where interest is added to your investment, which consequently earns interest and is added to your principal.

Long Term Trading Tip #3. Dividends:

Let me state the obvious:  Only traders following long term trading methods will obtain dividends.  Short-termers never hold on to a stock long enough to take advantage of this revenue source.  Here’s another factor to think about: several companies permit the long term trading investor to reinvest dividends for further share acquisitions.  This, obviously, provides an additional path to increasing the total value of your investment.

Long Term Trading Tip #4. Reduced Time Spent To Monitor Stocks:

Day traders seem to invest their whole day poring over their investments and checking daily, or perhaps hourly results. This has to be done in order to cash in on intraday unpredictability. We who are involved in long term buying and selling, on the other hand, can be effective with a weekly monitoring program. The weekly approach is far less stressful to the average trader.

Long Term Trading Tip #5. Market Corrections:

 The actuality of buying and selling in the stock market is that there may be times when your investments earn much less and other times when you make more. You can count on days, weeks, or even months when you will lose money  But be confident that you will generate good returns over time, as long as you use the long term trading perspective, and have invested in high quality stocks.  Of course there are occasions when some quality stocks don’t perform as well as anticipated.  A savvy investor will put a time limit on their investments, and relinquish those that fall short of expectations after a provided period of time.

Here’s the bottom line:  Having a long term trading point of view, and assuming you have acquired quality stocks, it is easier to achieve higher results as compared to our highly-stressed, day trader acquaintances.

For more valuable tips, please click here:  USA Stock Market

Panic Selling of Gold and SP500

Did you close out any long positions today? Well if not then you are one of a few!

Today (Wednesday) the market gapped down 1.5% at the opening bell which set a very negative tone for the session. Volume was shout as protective stops triggered and traders close out positions before prices fell much further. This gap seemed to have caught several traders off guard but those of you who follow my newsletter knew something big was brewing and to keep positions very small.

Just before the close on Tuesday I had a buy signal for the SP500 which was generated from the extreme readings on the market internals. After watching the market chop around and get squeezed into the apex of the rising wedge the past 3 weeks I knew something big was about to happen and I did not want to get everyone involved because I felt a large gap was about to happen and the odds were 50/50. rather we passed on the technical buy signal and waited to see what would happen Wednesday.

SP500 – SPY Exchange Traded Fund

In an uptrend this indicator works very well and can help time a bottom within 1-4 days. As you can see on the chart below we just had a huge sell off and everyone seemed to be exiting their positions. This panic selling tends to carry over for a couple sessions until the majority of traders around the globe are finished selling. A daily chart of the SPY etf clearly shows that when we see panic selling in the NYSE which I consider 15+ sell orders to each buy order to be PANIC SELLING. This is shown using the purple indicator at the bottom of the chart. Today there was an average of 37 sell orders to every buy order which tells me the majority of traders are closing out all their long positions.

The problem with this indicator is that in a down trend we tend to get these panic selling spikes on a regular basis which means this time it may not work out because of the trendline break today which I think has officially changed the trend from up to down. Because of this possible down trend starting I feel its best to wait and see if it’s a dead cat bounce or if there are real buyers behind it, then we will take action to go long or short the market.

Market Internals – Put/Call Ratio & NYSE Advance/Decline Line – 60 Min Charts

On the other side you can see the NYSE A/D line which shows how many stocks on the NYSE are advancing and how many have moved lower. When this indicator is below -1750 then we know the market is oversold on a short term basis and there should be some upward bias in the near future.

Two charts shows currently extreme levels. This typically means we a bounce should occur the following day or a gap higher. If you did not know there was a strong trendline breakdown today you most likely would have taking a small long position into the close.

The Put/Call ratio when above 1.00 means more people are purchasing put options, meaning they are leveraging themselves to make money if the market drops. As a contrarian indicator, if everyone is buying leverage to the down side then they should have sold their long positions already. That would mean most of the selling has already taken place in the market thus it should have some upward bias in the near term.

Now Lets Take A Look At Gold

Gold was left on the side of the road today as traders and investors focused on the equities market. I was actually a little surprised that it didn’t make a big move today because the US Dollar rocketed higher for the entire session. Anyone who has been watching gold closely already knows that gold is doing its own thing now… Some days it moves with the dollar, other days it does not… its become much more random than it used to be.

Anyways it looks to be forming two patterns… first one is a bull flag. If a breakout to the upside occurs that would send gold to the $1230-40 level.

The second pattern is a mini head and shoulders pattern which would send gold down to the $1180 area if the neck line is violated. It is a very tough call for gold.

Mid-Week Technical Traders Update:

In short, it’s going to take a day or two before we get a feel for the SP500 as we wait to see if it bounces with volume behind it. I personally would like a bounce so we can short it. It is unfortunate how the market broke down today. We were so close to getting a truly good setup in either direction but the FOMC meeting shook things up and caused the large gap which in turn made a large group of traders miss that beautiful drop… It’s frustrating when you wait for something only to have a piece of news mess things up. That’s just part of trading though.

As for gold, I feel it’s a 50/50 trade and could go either way so I am not going to take a position right now. I’m just going to wait for the market to tip its hand a little more before I jump.

I hope you found this information useful. If you would like to receive these trading reports, updates and ETF alerts be sure to visit my service at: www.TheGoldAndOilGuy.com

Chris Vermeulen

(This text provided by six pack abs, Waschbrettbauch & The Truth About Six Pack Abs)

Gold and Silver Market Recap Report for 07-26-10

Gold Market Commentary Report for 7/26/2010

August gold remained on the defensive during today’s session, finishing the day in negative territory. The erosion of risk concerns in US and in European markets made it difficult for August gold to hold any strength for sustained periods. Stronger US equity markets added to the pressure on prices. Continued ideas that the Euro zone bank stress tests were not sufficient enough to judge potential debt problems helped to keep any weakness in check.

Silver Market Commentary Report for 7/26/2010

September silver was able to recover from early weakness and finished the day with a moderate gain. An improved outlook for the US economy, highlighted by a jump in US New Home Sales, assisted the market in making the turnaround. Although strong equities provided additional strength to the recovery, September silver was unable to move above last week’s high by the close.

After reading the silver and gold recap, traders might want to take a peek at the commercial traders momentum.  The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports.  Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it.  In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much.  Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices.   Therefore, trader should be able to incorporate this valuable information into their future market education.

The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a recap of each commodity’s traded price activity, and a look ahead at the next day’s schedule.  Market commentaries for wheat, soybeans, corn, gold and silver are provided by CME Group.   The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. 

Andy Waldock publishes this blog.  Andy Waldock is a financial advisor, analyst, broker, asset manager and trader for Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, Andy Waldock may have positions for himself, his clients, or his relatives in any commodity future market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets may not be appropriate for all investors due to the high degree of leverage.  Investing in the commodity futures could result in considerable risk.  If you are interested in reading other circulated articles, commenting  on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.

Trading the Gold Futures Market

The gold market has had quite a climb since bottoming in December of ’08, rallying nearly 50%. I think a solid case can be made that this market is due for a correction. Furthermore, given the variables in play, the first leg of the correction could come hard and fast. As many of you know, I tend to place the general direction of my trades in line with commercial traders. Over the course of time, this has been a proven strategy. However, there are times when it would be foolish to blindly follow a given position when so much evidence is clearly stacked against it. This is a case when a choice should be made- AT MINIMUM – to take either one of the following actions. First, avoid buying the pullback. New long positions should be avoided. Second, crank up protective stops on existing long positions. Investors who have been long the gold market have done well. Whether in the physical gold market or the futures market, those profits should be protected. For those in the physical market, now would be a great time to use commodity futures to lock in profits without having to off load your physical holdings.

The most obvious caution flag we can see is that gold is testing its weekly trend, now coming in around $1170. From a purely technical standpoint, that should be enough to get your attention and cause protective measures to be taken for long positions.

The daily chart shows that gold was unable to make new highs during the “Flash Crash,” and that the recent highs at $1203 are providing the top side of a consolidation level that, when broken will take out the existing trend. The consolidation pattern over the last six trading sessions suggests a fall to $1148 is imminent. Activation of this short term pattern would be a clear violation of the previously mentioned weekly trend.

*Clicking on this chart link will show the chart(s) mentioned and will also let you continue reading the article.*

A deeper look shows divergent technical and inter-market analysis that suggests the gold market is top heavy here. The final chart shows a large build in commercial positions through  June and so far into July. Typically, this would be enough buying to push the market above the highs at $1220 and make a strong argument for new highs above $1270. The fact that the market’s reaction has been oblivious to this is a clear warning sign of impending weakness. The lack of a positive response to the commercial buying is clearly visible in the blue line of the last chart as each successive rally attempt has shown less fervor than the last.  

Finally, a brief survey of macro- economic analysis shows that the interest rate markets have no pending fears of inflation. The stock market shows the July lows may have been a short trap and market crash fake out. And lastly, the Dollar’s pull back is to be expected after the run up its had and we are already seeing new buying come in to slow its descent. 

The daily commentaries provide a summary of any reports released that day, a recap of each commodity’s traded price activity, an analysis of the factors that influenced price activity, and a look ahead at the next day’s schedule.  Market commentaries for soybeans, corn, wheat, silver and gold are provided by CME Group.   The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

This blog is publicized by Andy Waldock.  Andy Waldock is a financial advisor, analyst, broker, asset manager and traderfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, Andy Waldock may have positions for himself, his family, or his clients in any commodity future market reviewed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets may not be suitable for all investors due to the high degree of leverage.  There is considerable risk in investing in commodity futures.  If you are interested in reading other published articles, commenting  on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.