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![]() Gold and Silver Trading Strategy By Chris Vermeulen May 10, 2010 As we all know, last week's stock market blip/mini crash was very emotional for those of you watching or trading it live. A lot of money changed hands last week and you either lost a bundle or made a bundle. I sent out some charts and a video on Thursday night about the market crash/recovery. If you haven't seen it, it's called Stock Market Micro Intraday Crash Shows Us Where the Safe Havens Are. Below are my ETF charts for the commodities and index I actively follow and trade. GLD Gold Bullion ETF Daily Chart GLD is a great ETF to trade as it generates 10-20 quality low risk set-ups each year for subscribers. The chart clearly shows the large rally in late 2009 and the correction as it formed patterns moving from a down-trend -- base -- and back to an up-trend. ![]() $USD US Dollar Index Monthly Chart This weekly chart I think shows some serious potential for gold and silver prices. The US Dollar is now trading at a key resistance level which I think it will have a tough time moving higher. The dollar has been moving up for several months and looks ready for a pullback or at least a pause. If the dollar starts to roll over in the next few months then we should see gold and silver move substantially higher. ![]() SLV Silver Bullion ETF Daily Chart Silver like gold bounced off a key support level last week as investors started to buy silver as a safe haven. Gold moved up sharply on the day of the intraday market crash while silver traded sideways for a day before joining the party. The following day investors starting buying up silver because it was lagging its big sister -- gold. ![]() Conclusion Stepping back and looking at the above charts it looks as thought we could see stocks and commodities digest the recent moves. In short, gold and silver have rallied strong and now trading near resistance. I figured it would see three to four weeks to reach those prices yet it happened in 1 day so now the market could do very little for three to four weeks. The US dollar is something we will be watching more closely because it's trading at key resistance level. In the past it has taken a month or two for a rally to roll over and head back down. This could play out very nicely if the dollar tops and the rest of the market trends sideways to digest the recent moves. Once the dollar starts to fall it will provide fuel for the next rally in both stocks and commodities. If you would like to receive my ETF trading strategy and trading signals, please check out my website: 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.Home | Products and Prices | Buying | Selling | FAQ | Articles | Forms | Top Website © Copyright J&M Coin & Jewellery Ltd. 2010. All rights reserved. Pricing index programming and site hosting by Sandrix Technologies Ltd. (AXD) | |||||||||||||||||||