Gold & Silver: Consolidation

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Old wisdom says that patience is the key to success. We can see in the charts below that both metals are in a time-consuming consolidation mode. Only patient traders could survive in this situation as see-saw moves play on our nerves.

Chart 1. Gold Daily

Daily Gold Chart
Chart courtesy of tradingview.com

The gold hit a maximum at the $1375 mark this July and couldn’t advance higher. It dropped to the $1310 level at the end of the same month. Another zigzag to the upside was deemed to be a continuation of the bullish move, but it stopped below the July top at the $1367 mark. The next drop hit the $1302 level below the July’s low. The metal has reversed to the upside again and shaped another lower top at the $1352 level last week. I put an orange declining channel to isolate the consolidation for the comfort of your eyes. Continue reading "Gold & Silver: Consolidation" →

Haven't We Seen All Of This Before?

Posted on by The INO.com Team

Hello MarketClub members everywhere. There is no doubt about it Friday's move was sharp and painful for many investors. However, if you are following the Trade Triangles you were out of the market and on the sidelines based on the red weekly Trade Triangle's that were indicating potential problems for all the major indices.

MarketClub's Mid-day Market Report

Looking back, Friday's move looks very similar to the move we saw on June 24 of this year when the market dropped dramatically on a Friday only to open lower on Monday. The markets then reversed themselves and moved up and made back all their losses in just four or five days.

The big question is, is this going to be a repeat of last June? Continue reading "Haven't We Seen All Of This Before?" →

Coming Soon: Uncle Sam's Credit Cards

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates


If you were in the market for a new credit card or needed a loan to buy a car, would you think to go to some federal agency to get one?

Not right now, maybe, but we seem to be headed in that direction—and very quickly, too.

And the idea isn’t all that far-fetched when you come to think of it. The federal government is already heavily involved in consumer lending, either directly or indirectly. It’s the biggest player by far in the two biggest consumer loan businesses. Getting into new areas like credit cards and auto loans isn’t a terribly big leap.

It’s fairly safe to say that the residential mortgage market would barely exist were it not for the government-sponsored enterprises like Fannie Mae and Freddie Mac, plus other government agencies like the FHA, VA, and USDA. While these agencies don’t make loans themselves, they buy them from private lenders, stamping a federal guarantee on them in the process. Before the global financial crisis, there was a thriving market for private mortgages through a private secondary market, but since then that market has largely ceased to exist, except for a smattering of securities backed by jumbo loans, those too large for the federal agencies to buy. That leaves the government with about a 90% or more market share. Prior to the financial crisis, the government still commanded a market share of about 50%. Continue reading "Coming Soon: Uncle Sam's Credit Cards" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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 December contract settled last Friday in New York at 1,323 an ounce while currently trading at 1,336 as I was recommending a short position getting stopped out in Tuesday's trade around the 1,347 level as gold prices rallied sharply off of the monthly unemployment number which was released last Friday. I’ve been recommending a short position from around 1,333 and added more contracts around the 1,320 level as this was a frustrating trade as prices traded as low as 1,307 earlier in the week as this market remains very choppy as I’m now sitting on the sidelines looking at other markets that are beginning to trend. Gold prices continue to react off what the Federal Reserve says and what the most recent rumor developing so avoid this market at present as there is no trend as who knows where interest rates are going at this time. Continue reading "Weekly Futures Recap With Mike Seery" →

Stocks Tumble On Fear Of Interest Rate Hike

Posted on by The INO.com Team

Hello MarketClub members everywhere. Stocks are trading sharply lower today after comments from a Federal Reserve banker suggests that a September rate hike might not be entirely off the table after all.

MarketClub's Mid-day Market Report

In a speech today Federal Reserve Bank of Boston President Eric Rosengren said that "a reasonable case can be made" for a rate hike, according to The Wall Street Journal.

Those words shook Wall Street, as traders had pretty much written off an interest rate increase at the Fed's Sept. 20-21 meeting. This feeling was based on the weaker-than-expected August jobs report released last week. Although Rosengren did not specifically mention September, his words, to some degree, leaves the door open to a rate hike, which Wall Street is not positioned for according to analysts.

Key levels to watch next week: Continue reading "Stocks Tumble On Fear Of Interest Rate Hike" →