Today's Video Update: Gold and Oil Prices Swoon

Hello traders everywhere! Adam Hewison here, President of and Co-creator of MarketClub, with your mid-day market update for Friday, the 12th of April.

Gold (XAUUSDO) continues to come under pressure and is going to close out the week on a negative note. It would appear as though nobody wants to hold gold anymore. The gold market is close to a key area of support around the $1,500 area. A close below that area today does not auger too well for this market. Rumors that Cyprus is selling gold to improve its bank balances is also adding downside pressure on an already depressed market. We will be checking in on gold today and analyzing just how far this market can go from here.

Watch Today's Video Update Here

Crude Oil
The crude oil market (CL.M13.E) flashed another negative Trade Triangle this morning is quickly entering a critical juncture were it needs to find support. At the moment, we are in choppy trading markets that are indicative of potential trend changes in the future. We will be jumping into the oil patch today and analyzing just what's going on with this market using our Trade Triangle technology.

The S&P 500 and the NASDAQ
The key thing in trading is not to fight the major trend, the odds favor letting the trend develop and then move with the trend. At the beginning of 2013, many analysts were thinking the fundamentals and debt load was too great for stocks to move higher. Since that time, we have seen double digit moves in the major indices.

Using our Trade Triangle technology, we were able to capture 95% of the move up and remain positive on the market. Providing that the Fed keeps pumping money into the system to the tune of $85 billion a month, will the market continue to move higher? On the other hand, markets have a tendency to over shoot both on the upside and downside. Technical analysis can help in deciphering when the market is changing course.

Bailout Nation
Once again, Cyprus is in the headlines over confusion with the state of the financial bailout and it has led to some sharp moves in European markets this Friday. The negative market action wiped out most of the positive reaction and the better-than-expected Euro-zone industrial production figures. The story on Cyprus has not yet been written and I still believe that Cyprus is the tip of the iceberg for Europe.

Watch Today's Video Update Here

Potential Chaos Ahead
North Korea - ticking down towards ...
Japan - Kuroda is the king risk
Europe - Portugal and Ireland - economic risk
The Fed - Hints QE is coming to an end
May 19th – Debt ceiling suspension expire

Have a great trading day,

Adam Hewison
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.

5 thoughts on “Today's Video Update: Gold and Oil Prices Swoon

  1. This dip to 1500 was due last Autumn. Gold wont drop further.
    The last comment is spot on. It is not if, but when? When?

  2. Nice fantasy, Steve. The rest of us are relegated to living in the real world, and faced with the fact that GLD liquidated more in 1 hour than Cyprus could unload in a month. As in, this is a bear market and the miners have been predicting this would happen for quite a while.

    You could easily have posted your exact same missive in oh say, 1982, when things were all going to hell as well and gold could not possibly go any lower. Cheers

  3. Nobody wants to hold gold anymore except Russia, China, and India, and probably most of the central banks. They will be taking possession at these artificially low prices., which are created by massive naked short selling (illegal but *zero* enforcement of regulations). The objective is to shake out the market for small investors who cannot afford to hold physical.

    Why do this? To maintain the three largest bubbles in history: US Treasuries, the US dollar and the US stock market. How can it be done? Unlimited creation of electronic dollars, endless Quantitative Easing, $85 billion (or more) per month to purchase unwanted Treasuries and toxic securities. Not counting supplying trillion after trillion to European dollar-swap facilities to prevent central bank collapse in Europe. Plenty of dollars made available to manipulate all markets, to provide the Plunge Protection Team the means to drive stock prices higher and higher (80%+ of all trades made by big banks, these are not small investors moving the markets), even in the face of a non-recovery and increasing unemployment (you have to look at non-governmental figures if you want the real rates for unemployment, inflation, etc). Happy Days are Here Again!! Party like its 1999.

    There is, however, a limit to this process, because the BRICS nations have made extensive arrangements to bypass US dollar in trade, to eliminate the dollar as the global reserve currency. This new Eurasian trade network will include something like 3/4 of the world's population and will not include the US or the US dollar. As the dollar is progressively excluded from global trade, and US Treasuries are returned to US/Anglo bankers in the process, the end game will become clear.

    Whenever the Saudis make it official that they will accept a basket of currencies, the end of the petrodollar will draw the final curtain upon the US $$$ as the global reserve currency. When the US dollar has to compete with other currencies, it will be sharply devalued, resulting in disruption of supply to the US and corresponding shortages of virtually every consumer good. Then the true value of precious metals will become evident, although it may not do US citizens much good, if they are faced with Federal dictates preventing private ownership.

    1. thank you very much
      and why gold down would maintain the largest 3 bubbles?
      Could you explain about that?

      1. That's simple. In a world of deception and make believe wealth, where telling the truth becomes a revolutionary act, perception of reality is being manipulated. Go back to watching TV and believe all is well. Another manipulation of perception by the friendly financial elites that want you to stay on the S.S. Titanic with a last party, while they head to the life boats. Supress gold, keep the stock markets high- all is well.
        If you want a life vest and not end up under water- then buy physical gold bullion like the smart central banks are. Ask yourself this question. Has any paper currency ever survived its use as a store of value? Has gold and silver? End of sermon. The ch

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