Category: General

Chart of The Week - Corn to Move Higher

Posted on by admin

By: Chris Wilkinson of Longleaftrading.com

Corn has been in an upward trend since it put in its lows at the beginning of October. From there the chart has traded a series of measured Fibonacci levels all the way into profit targets each time. Last week's correction brings us right at the next Fibonacci sequence to take a long position and stick with this trend.

For a review of the previous Fibonacci sequence that traded into profit targets we draw the Fib tool from the lows of November 19th (362.5) up to November 28th highs (393.75). With this drawn you can see the market pulled back and found support right on the 50% level and traded directly into its first and second profit targets, the -23.6% Fib level and the -61.8% Fib level. See the Chart below.

4 Hour Chart Corn

Now that the previous move has corrected we continue to draw the next series until we get to one that fails the 61.8% level. A failure happens when we get a strong close on a large time candle. An hourly close or higher is sufficient to call it a failure. Normally smaller time frames will trade back and forth around those levels so I look to larger time frames for confirmation. If a failure happens it is assumed the trend is over and the next one begins in the opposite direction.

The next move found by using the Fibonacci tool is drawn from the support of the previous move. We use the lows of December 3rd (377.25) and draw it all the way up to the new highs on December 29th (417). See Chart Below. Continue reading "Chart of The Week - Corn to Move Higher" →

Investing During the Era of Peak Gold Discoveries

Posted on by admin

The Gold Report: Brent, you've quoted Goldcorp Inc.'s (G:TSX; GG:NYSE) CEO, Charles Jeannes, saying that we've reached peak economic gold production. What led us to this point?

Brent Cook: That's a big question that really goes back to what was happening in the global exploration sector 20+ years ago. I don't want to get into the peak gold production idea but instead focus on the discovery curve and what's behind the problem we are seeing in the gold sector.

Why aren't we finding as many gold deposits as we used to, or at least as many economic deposits? In 1995 or so, the discovery boom in the gold sector peaked and that success is largely tied to the opening of large areas of earth that were previously off limits to serious exploration. Since then, exploration success and new discoveries have trended down. However, in terms of gold production, it's taken about 20 years for all those discoveries to work their way through the system to come into full production.

So what Charles Jeannes sees is that in 2015 or so, gold production is going to be tapering off as opposed to expanding. That's especially true given the current gold price and cost structure. A lot of these companies aren't making much money, or any money at all. They'll be shutting down loss-making projects over the coming years.

TGR: Are we running out of gold in the world, or did we just not make an investment in a timely manner, say, 20 years ago? Continue reading "Investing During the Era of Peak Gold Discoveries" →

The Obvious Advantages of Trading Forex over any Other Open Market

Posted on by The INO.com Team

The sudden hype around Forex trading is not without good reason. Forex, which is the exchange of currency on the open market, provides a number of benefits that you won’t get from the stock market or other trading venues. Forex is fast, it’s fun and it has the potential to lead to big profits.

The Size of the Market

There is close to 2 trillion dollars being traded on the Forex market every single day. You don’t have that kind of liquidity in any of the other markets. With that much money floating around, there is no worrying about prices changing too much before you are able to enter or exit your trade.

With a market that is this large, it is also nearly impossible for prices to be manipulated by any one single group. This allows for a more accurate read of supply and demand as you analyze the market and your currency pairs.

Small Initial Capital

If you shop around brokers, you are going to find some that allow an initial investment of as low as $50. There is always potential to gain money in the Forex market, even when you are only putting up a small amount of money to start. Continue reading "The Obvious Advantages of Trading Forex over any Other Open Market" →

Where Have All the Statesmen Gone?

Posted on by admin

By: Marin Katusa, Chief Energy Investment Strategist

One of the most striking things about the Colder War—as I explore in my new book of the same name—has been the contrast between the peevish tone of the West’s leaders compared to the more grown-up and statesmanlike approach that Putin is taking in international affairs.

Western leaders and their unquestioning media propagandists appear to believe that diplomatic relations are some kind of reward for good behavior. But it’s actually more important to establish a constructive dialogue with your enemies or rivals than your friends, because that’s where you need to find common ground. Indeed, it’s been the basis for diplomacy since time immemorial.

Reassuringly, despite having been the target of the Ukraine crisis rather than the instigator, Putin still sees the West as a potential partner, not an enemy. Nor does, he says, Russia have any interest in building an empire of its own. In theory, if Putin is sincere, there should be plenty of room for cooperation, especially in the fight against terrorism.

As Putin said in his speech at the Valdai International Discussion Club in Sochi in October—whose theme was “The World Order: New Rules or a Game without Rules”—he hasn’t given up on working with the West on shared risks and common goals, provided it’s based on mutual respect and an agreement not to interfere in one another’s domestic affairs.

Putin has, of course, already shown that he can rise above the fray. By negotiating the destruction of Assad’s chemical weapons arsenal under international supervision, he did Obama a big favor and got him off the hook in Syria. Continue reading "Where Have All the Statesmen Gone?" →

Weekly Futures Recap With Mike Seery

Posted on by admin

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the February contract witnessed another extremely volatile trading session with another $20 trading range currently trading up $4 at 1,188 after trading as low as 1,167 earlier in the session as the U.S dollar hit another multiyear high pressuring many the commodity prices, however bottom feeders appeared thinking that gold was overdone to the downside. Gold futures are trading below their 20 and 100 day moving average as I am currently sitting on the sidelines in this market waiting for better chart structure to develop as the market is just too volatile in my opinion, however if you are bearish this market I would sell at today’s price while placing my stop above the 10 day high which currently stands at 1,210 risking around $23 or $2,300 per contract plus slippage and commission as the chart structure is relatively solid at the current time. Gold futures remain in a long-term downtrend as investors are still putting money into the S&P 500 and out of the precious metals especially with a strong U.S dollar which looks to head higher in my opinion and with worldwide problems cooling down especially with Russia there’s really no reason to own gold at the current time.

Gold futures traded over the last 2 months in a price range between $1,140-$1,240 and now around mid-range so I’m waiting for a trend to develop as traders are waiting next Friday’s monthly unemployment report which should send even more volatility into this market so make sure if you are in the futures market that you use the proper amount contracts risking 2% of your account balance on any given trade as this market is high risk.
TREND: LOWER
CHART STRUCTURE: EXCELLENT Continue reading "Weekly Futures Recap With Mike Seery" →