Tag: danielstrading.com

October Frightfest: Failure to Break Concrete Ceiling Results in Pullback

Posted on by The INO.com Team

HEALTHY CONSOLIDATION OR DEEPER CORRECTION AHEAD?

The month of October has not been kind to Gold & Silver Bulls as the markets have continued to breakdown, ending a lackluster week with an especially weak close.

The inability or failure to take out the Bears’ Concrete Ceilings of resistance at $1800 Gold and $35 Silver has weighed heavily on the Bulls as this consolidation is wringing out any excessive bullish sentiment from these heavy metals, hard currencies.

Let’s take a quick look at how far (and how fast) these markets have recently fallen off their most recent highs: Continue reading "October Frightfest: Failure to Break Concrete Ceiling Results in Pullback" →

How to Trade E-mini Price Channels

Posted on by The INO.com Team

Trading Price Channels is a dynamic yet easy to learn form of trading that relies on the markets natural tendency to trend. It is a type of technical analysis that provides ideal areas from which to buy and sell. Price Channels also show you where to put your stop-loss and where to take your profit. Here are a few of the best ways to take advantage of information the market freely gives you.

STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A “LIMIT MOVE”, IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.

In technical analysis, a Price Channel is defined by two parallel trend lines. The upper trend line connects price highs and the lower trend line connects price lows. Here are examples of 3 types of Price Channels. Continue reading "How to Trade E-mini Price Channels" →

The US Dollar and Inflation!

Posted on by The INO.com Team

The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly:

  • Euro 57.6 % weight
  • Japanese yen 13.6 % weight
  • Pound sterling 11.9 % weight
  • Canadian dollar 9.1 % weight
  • Swedish krona 4.2 % weight
  • Swiss franc 3.6 % weight

The US Dollar typically has an inverse relationship to the other currencies and is traded at the ICE exchange. Post WWII, the US Dollar was tied to the Gold Standard, but today, the dollar is without intrinsic value. It is only valuable in that the US states its value. In recent years the value of the US Dollar may be decreasing due to oversaturation of the currency, low interest rates and the increasing debt in the US. The weaker dollar does typically help boost US exports as the foreign buyers may garnish more for their money when the dollar is undervalued. The US Dollar may also act as a safe-haven product that investors may flock to during times of uncertainty. The investment community may often reference the CFTC Commitment of Traders (COT) report to see the net longs or shorts in the market that week to determine any trends. It is typical to follow the big money in trading. Last week, for example, traders held a net short position in the dollar of $11.4 billion as of September 18th which was one of the largest short position in some time. The allocations shift and traders may follow the allocations. The US Dollar also may trade inversely to Gold which is actually another (hard) currency as well. Continue reading "The US Dollar and Inflation!" →

Beyond the "Spotlight"

Posted on by The INO.com Team

The GBE Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.

Highlighting This Week’s Potential Breakouts:

December 2012 Soybean Oil

The December 2012 Soybean Oil contract has potentially formed a 1-2-3 Top Formation. The contract made a new 12 month high on September 4 at 58.60. This high sets up the number one point of the formation. The market pulled back to 55.68 on September 12. This low sets up the number two point of the formation. Friday, September 14, the contract traded as high as 57.80. If this price holds, it would setup the number three point of the formation. The market sold-off in the afternoon and on the close, so it's likely the market continues to sell-off into Monday's session. A break of the number two point of 55.68 would trigger an entry to the downside. There was a surge in trading volume on days when the first two points of the formation were established. Currently the Trend Seeker (a US Chart Company tool) is Up. This trend could reverse if the market trades through the support level near the number two point. A potential stop loss could be the number 2 point of the formation. Potential targets could be the 51.88 low (8/8/12) or the twelve month low of 48.64 (6/15/12). Continue reading "Beyond the "Spotlight"" →

The Gold & Silver Speculator

Posted on by The INO.com Team

The Gold & Silver markets continue to take giant leaps forward as the calendar heats up early September. After 3 consecutive weeks of solid performance to the upside, Gold rests just shy of $1700 while Silver marks time near $32.25.

Major short covering and new momentum buying before/during/and after the Jackson Hole Symposium has been fueling their moves higher. As elated as the Bulls are, there is danger on the edge of town.(The End, The Doors) Look out for Weird Scenes Inside The Gold Mine.

A potentially massive macro event risk loom large in the form of “Super Mario’s” ECB Decision tomorrow and next week’s FOMC Meeting. The current paths of least resistance for these Heavy Metals. Hard Currencies are up but face enormous near-term obstacles should either meeting disappoint/fail to satisfy. We could very well be in an environment where these event risks could trigger enormous moves in either direction. Be prepared. Continue reading "The Gold & Silver Speculator" →