S&P 500
1948.86
+35.01 +1.83%
Dow Indu
16351.38
+293.03 +1.82%
Nasdaq
4744.79
+108.69 +2.29%
Crude Oil
46.11
-0.14 -0.32%
Gold
1133.290
+0.035 0.00%
Euro
1.121850
-0.000075 -0.01%
US Dollar
95.976
+0.002 0.00%
Strong

It's Not Over…

I believe that the "dead cat bounce" I discussed last week has occurred with the market action seen late last week. Many of the major indices have rallied back to their Fibonacci resistance levels which should hold the markets' upward momentum, at least in the short term.

If you're not familiar with our Fibonacci tool, you can learn about it right here.

Another big negative for the markets is that many of the world indices had their worst month in three years. Unless there is a miracle today, it would appear as though the month of August is going to go into the minus column for the Dow, S&P 500 and NASDAQ.

There is an old trading maxim which you may have heard, "don't try to catch a falling knife," that should be every investors' mantra for September.

One of the problems overhanging the market right now has to be the Fed and if they are going to raise interest rates in September. This uncertainty is not a good thing for the market and it would appear as though the Fed and the rest of the Central Banks are pretty much out of bullets in terms of helping the economy and the markets. [Read more...]

Gold Update: Major Reversal

Aibek Burabayev - INO.com Contributor - Metals


Gold Has Already Started Its Hunt For Stocks

Chart 1: Gold/S&P500 Ratio Daily
XAUUSDO/SP500 Ratio Chart
Chart courtesy of TradingView.com

Two weeks ago in my special post about the Gold and stocks correlation, I was talking about the coming end of the Gold/S&P500 ratio collapse and I was really surprised by this immediate outcome shown in the chart above. My congratulations to those who luckily bought Gold and shorted the stock index, now you can enjoy a decent 17% gain on the trade and this just may be the beginning. [Read more...]

Supply and Demand Will Rescue Gold Soon

The Gold Report: The gold sector entered full-blown panic mode in July with the Bloomberg analysts forecasting a dip below $1,000 per ounce ($1,000/oz) this year, and Deutsche Bank forecasting $750/oz. Is this just fear feeding on fear, or is there something else going on?

Jeffrey Mosseri: It is fear feeding on fear, but there are two other things going on. The first is the strength of the dollar, and the second is the weakness in the price of oil. Combined, these two factors have greatly and negatively affected the prices of all metals in U.S. dollars. Over the past year, gold is up 2040% in many currencies.

TGR: In the last couple of years, the idea that the price of gold is being manipulated downward is no longer dismissed entirely as a conspiracy theory.

"Commerce Resource Corp. recently announced excellent drilling results at its Ashram rare earth deposit."

Douglass Loud: I wouldn't want to use the word "manipulation," but you could have an analyst predicting a gold price of $1,050/oz, followed by someone on the trading desk shorting it down to $1,050/oz, without any collusion.

TGR: How big a role does China have in setting the gold price? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/7AjSm7ArB80/16736

Market Extremes: Gold Is Going To Take On Stocks And More In Europe

Aibek Burabayev - INO.com Contributor - Metals


This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.

Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?

XAUUSDO/CME_SP500
Chart courtesy of TradingView.com

As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.

This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. [Read more...]

Six Miners Dundee's Joseph Fazzini Believes Will Weather the Storm

The Gold Report: Many of the people we interview have a theory about why gold is performing poorly this summer despite so much global uncertainty, especially in China and Greece. What's your theory?

Joseph Fazzini: Gold typically plays numerous roles, including being a hedge against inflation, devaluation and economic turmoil, but it's still a commodity. Most commodities typically come under pressure in a recessionary environment. Right now, the global economic landscape isn't all that promising, inflation remains minimal and investors prefer other safe-haven investments (i.e., U.S. dollar). As a result, we expect gold to continue performing in-line with most other commodities and remain under pressure.

TGR: How low can gold go? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/80tqw-JMTeg/16720

Gold Hits a 5-Year Low: How to Time the Next MAJOR Bottom

By: Elliott Wave International

"In what traders called a 'bear raid,' sellers on Monday dumped an estimated 33 tonnes of gold in just two minutes on exchanges in Shanghai and New York, sending prices on a nearly $50 downward spiral from which they never fully recovered." (Reuters, July 21)

If you live in the U.S., maybe you've noticed lately that "We Buy Gold!" signs are disappearing from sidewalks in front of pawn shops. The signs really began popping up in 2010-2011, when gold prices were climbing to their all-time high of $1900 an ounce. And even after gold tumbled from that peak in September 2011, the signs stayed up for months. Only after gold fell below $1200 an ounce in 2013 -- and price stayed flat for almost two years -- did "We Buy Gold!" signs become scarce.

Someone may chuckle at this brief record of poor timing decisions, and maybe even put it down to the general investment ineptitude of laymen. Certainly, big-name gold market players -- like central banks, for example -- with their access to privileged information and armies of PhD's would not make timing mistakes like that. Right? [Read more...]

A Wynning Trade In Gold ?

Join Todd Gordon of TradingAnalysis.com as he takes you through two trade setups using options with Fibonacci analysis. We first look at our gamble on WYNN, and then move to a chart that looks set to lose it's luster, gold.

Learn more about TradingAnalysis.com here.

Plan Your Trade, and Trade Your Plan,
Todd Gordon

Take Advantage of the Volatility in Stocks with This Gold Play

Daniel Cross - INO.com Contributor - Equities


The recent Greek crisis and Chinese stock market crash has injected high volatility back into the financial markets and dragged down the broader averages over the past week or so. Before you hit the panic button and start selling though, this news isn't necessarily a bad thing.

There are two big factors working for savvy investors right now. One is a fundamental tenant of investing – no one ever made money by panicking. A market sell-off means plenty of stocks that might not even be exposed to the events occurring overseas are suddenly much cheaper right now. Value investors know that the pickings are good when everyone else is nervous because there are deals to be found in multiple market sectors.

The other factor is that sudden uncertainty usually translates into good news for gold. This safe haven asset is a tried and true resource for investors who want to place to park their gains while the stock market undergoes a correction. [Read more...]

Year Of Shocks: Which Of The Safe Havens Saved The Most?

Aibek Burabayev - INO.com Contributor - Metals


It's only the middle of the year, but we've already seen quite a lot, even for the seasoned investor.

The Swiss National Bank (SNB) kicked off the ball in January for what has proven to be a nightmare year thus far. It's caused a lot of tears and fears among investors, some of them went bankrupt in one day after it let the franc go.

Greece and it's possible leave of the single currency zone has been dubbed the "Grexit." It's added turmoil to the markets over the last month with currencies crosses opening with gaps on the last two consecutive Mondays. The single currency zone has never been so vulnerable from the day of its launch, as Greek precedent can find followers and bring Germany a lot of headaches furthermore.

The United Kingdom also played its role with the Queen's speech this May containing words of possible divorce with the European Union in 2017, which was named "Brexit" (Britain's exit) a la Grexit.

All of the cases mentioned above are episodes of the world currency war and the first prey of it is the European single currency that has been damaged a lot. [Read more...]

Gold Update: Last Bear Attack Is Pending

Aibek Burabayev - INO.com Contributor - Metals


Today I want to share with you fully renewed charts with Gold technicals.

Big Picture: Correction

FX:XAUUSD Gold/U.S. Dollar Monthly

Chart courtesy of Tradingview.com

The monthly chart shows a clear uptrend in the Gold market from $251.95 to $1920.80, which has now been retraced in a small correction. Small, because the Bears could hardly move through the first barrier of the 38.2% Fibonacci level that is below $1283. [Read more...]

© Copyright INO.com, Inc. All Rights Reserved.