Weekend Gold, Silver, Nat Gas, Oil and SP500 Report

By: Chris Vermeulen | Mon, Apr 26, 2010
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Last week the market slowly recovered from the recent sell off in stocks and commodities. So far the market is unfolding as we expected and with any luck there will be a surge of low risk setups across the market in the near future. Take a look at the charts below.

GLD - Gold Chart

GLD/Gold is trading at a key pivot point. This week there will most likely be a sizable move either up or down. Past chart analysis is pointing to lower prices which would complete an ABC trace pattern and this makes for a larger and stronger rally once prices to turn back up. Silver is trading in much the same situation. Gold and silver tend to move together with silver having more volatility than gold.

SPDR Gold Trust Shares

UNG - Natural Gas Chart

Natural Gas continues to try and bottom and posted some solid gains last Thursday & Friday with rising volume. But we have seen this pattern form over and over again in the past year so I am not excited yet. Once the base is formed and the trend starts up we will find low risk entry points for this commodity. I would look for shorting opportunities but natural gas is so oversold I feel the risk is higher than I prefer.

United States Natural Gas Fund

USO - Crude Oil Chart

Looks like the trend line break down flushed out a lot of weak positions as seen in the volume surge. Oil momentum is still down but we are now starting to look for a buy signal.

United States Oil Fund

SPY - SP500 Chart

Equities recovered nicely from the previous week's sharp sell off. We saw volume rise with higher prices which is a strong sign of the overall strength of the market. But it is important to note that the market sentiment has reached an extreme level with 53% of traders now being bullish on the market and only 17% being bearish. This extreme level is the same level reached just before the January correction earlier this year.

S&P500 SPDRs

Equities and Commodity Trading Conclusion:

If recent historical prices repeat again then we are looking for a small move higher on Monday and then a couple days of weakness for both stocks and commodities later in the week.

The market is very close to generating several low risk trading signals which is very exciting.

If you would like to receive my ETF, Stocks or Futures Trading Signals please check out my website at www.TheTechnicalTraders.com.

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
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- The Fox Group
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He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/