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February 03, 2012 3:19:34 PM PST

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Articles and Commentary

ETF Trading Setups for Gold and Silver
By Chris Vermeulen
April 7, 2010

This week has been playing out as expected with prices grinding their way higher and lots of sharp intraday sell-offs and rallies which is indicative of a market getting toppy. Seems like the masses feel as though they are getting left behind which is why we are starting to see the panic buying in the market (new money buying at these lofty overbought prices).

Each time there is a new intraday or daily high on the major indexes there is a renewed bullishness created as breakout traders and novice traders buy into the market hoping for the next surge in price. It is these volume surges of new money entering the market which the big guys (smart money) are selling into. You can see it clear as day light on the intraday charts as new money gets sucked into the market new high and then two minutes later larger waves of selling hit the bids. I did explain and show a chart of how this looks to members of the FuturesTradingSignals.com today.

We have some very exciting times ahead and it's just a matter of letting the market unfold over time as we take advantage of these carefully measured low risk setups.

On to the charts ...

GLD ETF Trading - Gold Exchange Trading Fund
You can see how this chart has evolved from pattern to pattern as it bottomed over time. Today we had a breakout and I expect to see a pullback which is normal when prices gap up and breakout of a pattern. An entry point would be considered on a pullback if the proper criteria are met.


SLV ETF Trading - Exchange Traded Fund
Silver has always been much more volatile than gold which is why the pullback early this year was so strong and why the recent rally has also covered so much ground. As you can see silver has broke out above resistance but is now looking overbought. A pullback in precious metals is expected, or a pause at least.


Mid-Week Trading Conclusion:
In short, the bull market continues to grind its way higher. Unfortunately we cannot do much until there is some type of correction because buying way up here after a two-month rally is outside of my comfort zone. I foresee a 3-5% correction starting any day now so I am keeping my gunpowder dry.

Check out my ETF trading signals at: www.TheGoldAndOilGuy.com.


TheGoldAndOilGuy.com is owned and run by me (Chris Vermeulen), an individual gold trading specialist. After sharing my gold analysis with friends, traders and financial advisors, I decided to make TheGoldAndOilGuy.com my full time job in 2003. This service was designed from the ground up to help individual traders who want to focus on consistent, accurate and profitable trades. Over the past ten years my strategy has been refined to one golden trading vehicle which has an almost 100% accuracy. The GLD (DGP and DZZ) gold exchange traded funds are now the most accurate trading vehicle I have seen, so it's my vehicle of choice. Members of TheGoldAndOilGuy.com not only get to trade my signals, but see my live trading charts and ask me all the questions they wish. My goal is for all of us to make money and have fun in life.


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