Chart of The Week - Gold

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Further Downside Expected as Gold Finally Chooses Its Direction

This week's market focus turns to August Gold futures, where a break out of recent consolidation may have finally determined the near term direction of Gold. The week starts out extremely bearish for Gold as the stock market continues to establish new all-time high levels. Recent economic numbers that have missed the mark have provided additional confidence to stock market investors that FED support will continue in the stock market. Optimism that stocks can continue their higher track has taken away from the safe haven appeal of gold.

Over the past month, August Gold futures have consolidated into a very tight range as the market has been deciding on its future direction. As of this morning the direction looks to be a sell off for the foreseeable future. With a break of the recent pennant pattern at $1285, the next downside target will be $1240. A close below $1280 in today’s session would confirm a further potential downside move over the coming months.

To take advantage of this downside continuation, I would look to purchase August put option strategies in gold that would take advantage of the next potential continuation move to $1240, while allowing roughly 2 months for the strategy to work. These strategies would expire on July 28th. Per strategy used, we would look to keep the maximum exposure in the market to $500 and the maximum profit potential to $2,500.

I advise clients on trading futures and futures options markets on a day to day basis. If you have any questions regarding this chart or questions regarding trading futures and futures options, feel free to call me directly at 888-272-6926.

Thank you for your interest,
James Leeney
Account Executive
Phone: (888) 272-6926
www.longleaftrading.com

** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.

Is Gold Getting Ready To Move To The Upside?

Today I would like to share with you some observations I have made in the Gold (FOREX:XAUUSDO) market. This market is looking more and more interesting right now. In this short 4 minute video, I point out some key technical characteristics that I believe will be driving gold in the future. I also give you a very important level in gold that, in my opinion, will skyrocket gold to new highs.

If you have a few minutes, you may enjoy learning how you can trade gold using MarketClub's Trade Triangles. In the past, the success rate of the Trade Triangles in the second quarter of the year was about 80%. With that in mind, I am watching Gold (FOREX:XAUUSDO) very closely.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Chart of The Week - Gold

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

After a week where we saw a correction in stock index futures, we will be looking at June Gold Futures (NYMEX:GC.M14.E) to receive a possible flight-to-safety bid. The focus remains on the Russia-Ukraine conflict, where the prospect for violence is extremely high. This shifts the gold market’s focus from physical commodity fundamentals to safe haven issues. Further Russia-Ukraine tensions or continued pressure on stock index futures can provide an influx of buyers in the gold market.

On the technical side, gold has shown a lot of strength after rebounding from its April 1, 2014 low of 1278.3. Last Friday’s session was relatively quiet, consolidating and trading within the previous day’s range between 1324 and 1310.8. For this reason, along with multiple fundamental catalysts, I would be a buyer in June Gold futures and look for it to reach $1350.00 in the near future. Continue reading "Chart of The Week - Gold"

Gold Contrary Indicators

The gold sector is peopled by a high concentration of contrary indicators because it is a relatively (to the vast world of equities and bonds) small market that offers refuge from some of the damaging aspects of the spectrum of investment products that are supported by the manipulation of interest rates and printed (and digitally created) money supplies. Thus, gold has moral high ground if an asset can be thought to have morality.

More accurately, the people bullish on and promoting gold take high moral ground and that is where the emotional power comes from in this market. This power feeds upon the desires of regular people to not suffer the consequences of the 'evil' actions of those running a system that many do not agree with. Readers of this site know of course that I certainly don't agree with the setting and manipulation of interest rates by decree of man (and woman) in service to engineering desired outcomes in financial markets. Continue reading "Gold Contrary Indicators"

Gold Up, Stocks Down

Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Friday, the 24th of January.

Today I'm going to take another look at gold, as it appears as though we are seeing a rotation out of stocks and into this precious metal. Ten days ago, I wrote a special report on gold, which you can see here.

As we started the new year, 2014 seemed to have a distinct different vibe to it compared to 2013. Last year was obviously a great year for buying and holding onto stocks, 2014 may be cut from a different swath of cloth. Markets change and you have to be able and willing to change with them.

This is a very short video looking at spot gold and the SPDR Gold Shares ETF (PACF:GLD). I hope you learn from the video and take away some valuable knowledge that can help you in the markets.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.