There is an age-old question asking: How do you determine if a trader is biased? Show him a chart and ask where he thinks the market would go and then show him the same, but reversed chart and if the answer is the same, then this trader is indeed biased. We call such a trader a Perma-Bull or a Perma-Bear. The market sentiment is often split even as there are a lot of biased traders and market is then trapped within a range as there is no dominant opinion among the participants.
Every day I see how the trading community spreads opposite signals in any instrument creating an overwhelming sea of information where it’s hard for novice traders to focus and make a trading decision. Different levels of experience and fantasy generate the diversity of chart patterns and models. People change time frames and squeeze or expand charts; all of this affects the perception and therefore, the final decision.
Let’s perform an educational experiment with two patterns that I found on different time frames for the same instrument, copper. I will add two separate charts with those patterns followed by explanations. I am eager to see what you think about the outlook for this instrument after reading and voting on the pole at the end of the article. Continue reading "Copper On Big Time Frame Charts: $0.6 or $6?"→
Hello everyone, Adam Hewison here coming to you from the digital studios of MarketClub. Yesterday, the Barrick Gold Corporation (NYSE:ABX) had a major trend change to the upside signaled by a new green monthly Trade Triangle. It's the first buy signal ABX has had since it began its move on January 7, 2016. At that time the signal was it $8.33 and the market moved as high as $23 before pulling back.
Today I have put together five different charts that show why I believe Barrick Gold is headed significantly higher.
About This Stock
Barrick Gold Corporation (NYSE:ABX) engages in the exploration and development of gold and copper properties in the United States, Canada, Australia, Argentina, Chile, Peru, the Dominican Republic, Papua New Guinea, Tanzania, Zambia, and Saudi Arabia. It primarily explores for gold, copper, and nickel deposits. The company's main properties include Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, and Veladero. As of the end of 2015, ABX had proven and probable gold reserves of 91.9 million ounces; and 11.7 proven and probable copper reserves of billion pounds. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.
In chart number one can see that Barrick Gold broke over a 52-month long-term negative force line (1) and moved as high as $23 a share (2) before pulling back 50% (3).
Precious metals expert Michael Ballanger examines silver's recent moves upward.
In my business, there is a great deal of travel, be it to properties in the Peruvian Andes or the Canadian Yukon or to the investment conferences in New Orleans or San Francisco or London, so I get a full psychographic cross section of every type of investor imaginable. First of all, the audiences I have encountered at the "Sound Money" conferences in Nassau or Bermuda are usually quite conservative and usually well-dressed and well-groomed. When the topic is gold and it is a controversial speaker looking for "the end of Western civilization," the audiences tend to be a tad different with hair length and dress code noticeably more avant-garde.
However, when the topic is confined to silver, while the speakers tend to be "evangelical," the audiences appear to be (operative word being "appear") simply stark-raving madmen of the first order. They usually dress in military fatigues, the males are all in ponytails, the women weigh more than the men, and the T-shirts and baseball caps on both males and females carry logos from either the WWF or the Monster Truck conventions. However, they are usually quite erudite when discussing "survival techniques"; they are usually extremely well educated and they are all able to rhyme off the silver production numbers for the past 20 years BY COUNTRY; and most importantly, they carry high distain for anyone who fails to know these facts. Continue reading "All Hail the Mighty Silver Bugs..."→
October proved to be a spectacular month for stocks with the best gains seen since the third quarter of 2011. Historically, the last quarter proves to be a good one for stocks. That is not a guarantee that stocks will go higher, but historically since 1949, stocks have averaged a gain of 4% in Q4. That is followed by a strong Q1 with the average gain of 2%. History is all well and good, but it doesn't necessarily repeat itself in a very systematic fashion every single year.
Here's the stock that I think can do very well in Q4. The stock is TE Connectivity Ltd. (NYSE:TEL). Presently this stock is trading around the $64.90 area and I believe it can move substantially higher in Q4.
Hello MarketClub members and friends of MarketClub everywhere! Today, I have a brief market update on the general market and an in-depth analysis on gold.
2015 has not started off too well for the US equity markets, while the reverse seems to be true for the action in gold (FOREX:XAUUSDO). What's going on? Oil continues to slip, which most economists thought would be good for the economy, but it does not seem to be helping the market. This brings me to my next thought...
Do you know about the "January Barometer"? Since World War II, if the market closes down in January, the average price change was usually flat in the remaining 11 months. So while certain stocks may do very well overall if the market closes down this month, look for a less than stellar year.
As you can see, while stocks have been swooning, gold has actually been on the move to the upside. As I write this, gold is up almost 3% and we are only 6 days into January!
Take a look at the chart and you can see that gold has almost completed an important technical formation known as a "head and shoulders bottom", one of the most reliable formations in your technical arsenal.
A higher close today clearly breaks over the the all important "neckline" resistance level. Once over the "neckline," I can see gold moving based on the head-to-neckline measurement up to the $1,330 to $1,340 level.
Wishing you all the very best in 2015.
Every success with MarketClub, Adam Hewison