Gold Update: Total Recast

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Dear INO.com readers,

Today Gold hit the $1300 level and I updated my chart for Gold, as it was price trigger for my previous bearish scenario.

In my first article last December I charted the line graph for Gold with a descending triangle pattern detected on this metal. My projection for the mentioned pattern was bearish with quite bold target levels.

What is up today?

The main rule for success is to not to be biased and always challenge yourself with making a brand new analysis from time to time, and surely when market is not going your way.

Today I prepared an absolutely new Gold graph to put fresh eye on it, now with candlesticks.

Gold Chart, small and big wedge chart patterns.

This time I detected a very interesting chart pattern called the “wedge.” This type of patterns is outstanding as it has an ambiguous impact on the market with either a continued or reversed outcome. Luckily, we have two wedges on the same time frame at once. Both are the falling wedge type because of the descending highs and lows. The big one is highlighted in green and the small is in black. Apart from it, we have two more rare technical species on the chart. Continue reading "Gold Update: Total Recast" →

Is Market Sentiment Shifting to Gold?

Posted on by admin

The Gold Report: Quite a few analysts believe 2015 will be a year of great economic volatility, as foreshadowed by what happened with oil in 2014. Do you agree?

Eric Coffin: I do think 2015 will be pretty volatile, with the potential for nasty financial surprises. We've already seen bond yields go negative in Germany, France and elsewhere, and we could see big moves in and out of different asset classes.

TGR: Could the oil price collapse be a leading indicator of a global economic slowdown?

EC: That's an oversimplification. Economic growth in China has slowed and will probably slow some more. And China is the 800-pound gorilla of commodity consumption. Estimates for worldwide growth in 2015 have recently come down but not enough to justify the drop in the oil price.

"Excelsior Mining Corp.'s Gunnison project has extremely good logistics."

The main reason for the oil price crash is oversupply. U.S. supply has grown massively due to fracking and horizontal drilling, while Libya and Iran have both added a million barrels a day. These events have disrupted the equilibrium.

TGR: Mario Draghi, president of the European Central Bank (ECB), has famously boasted he will do "whatever it takes" to save the euro. Greece will hold an election Jan. 25, and the polls tell there is a good chance the new government will reject its current arrangement with the ECB. If this occurs, can the euro be saved? Continue reading "Is Market Sentiment Shifting to Gold?" →

Chicken Little and the Bond Market

Posted on by George Yacik

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


If you listen to some market observers, the record low yields in the Treasury bond market are warning us that the American economy is on the verge of falling into the same deflationary abyss of the euro zone and Japan. Like the Chicken Little story, if bond yields are falling, the sky must be falling, too.

With the yield on the 30-year T-bond hitting its lowest level ever last week, even lower than during the global financial crisis, they’re worried that if the Federal Reserve raises interest rates soon, we’ll shortly be back to the bad old days of 2008 and, even worse, 1929.

No less a figure than Paul Krugman, the New York Times’ economics commentator, wrote that the Swiss Central Bank’s move last week to decouple the franc from the free-falling euro is a portent of what could happen to us if we let our deflationary guard down. Continue reading "Chicken Little and the Bond Market" →

How The Oscars May Affect The Way You Look At The Markets

Posted on by The INO.com Team

This past weekend I saw a great movie titled, The Imitation Game starring Benedict Cumberbatch and Keira Knightley, both of whom are nominated for Academy Awards, as is the movie itself.

The Imitation Game chronicles the life of Alan Turing, who is largely credited with developing the computers we use today. The story revolves around the incredible work that was done at Bletchley Park in England to break the German Enigma code. At the time, the Enigma code and machine were thought to be unbreakable. The breaking of this code helped shorten and end the war. Otherwise, I would be writing this post in German and not English (I was born in England right after WW2).

If you haven't seen the movie, I highly recommend seeing it and witnessing the extraordinary genius of a remarkable man named Alan Turing.

Why would I discuss and recommend a movie when MarketClub and INO.com are financial websites dealing with stocks and futures? The reason I bring this up is because I wanted to share with you some math today that can help you in the market.

Now don't worry this is not high-level mathematics, it has more to do with a remarkable sequence of numbers known as the Fibonacci sequence. Continue reading "How The Oscars May Affect The Way You Look At The Markets" →

GameStop Corp. (GME) is an Attractive Buying Opportunity

Posted on by The INO.com Team

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GameStop Corp. (SPX: GME) has been victimized of late by the market’s bearish sentiment for video game retailers. Analysts claim the gaming industry is making an abrupt transition into streaming. In order for this statement to be true, a rather large assumption must be made -- that consumer preferences within the gaming industry are perfectly aligned. This has led investors to largely overlook GameStop’s bottom line growth thus far in FY 2015, in addition to the company’s strong forward earnings projections.


Chart courtesy of FinViz.com

As short interest approaches 50%, GameStop’s stock price has suffered through the turn of the New Year. The stock declined by 19% in less than 2 months after trading at $44.70/sh on November 20th, 2014. With a current price of $36.35/sh, GME is trading 22% below its 52-week high. Continue reading "GameStop Corp. (GME) is an Attractive Buying Opportunity" →