Tag: Gold (FOREX:XAUUSDO)

Market Perception, China And Why Gold Is Going Higher

Posted on by The INO.com Team

The carnage continues in China with the market closing after 30 minutes of trading when it reached the 7% trigger point to close the market. That weakness spilled over into the European and US markets this morning, all of which are sharply lower.

One bright spot this morning is the that gold seems to be finding new friends that have pushed it up to its best levels in 2 months.

Why is all of this happening?

It all boils down to market perception. Perception is perhaps the most powerful force in the marketplace and the perception right now, no matter how irrational, is that investors do not want to own stocks. Investors were clamoring to buy Amazon when it was approaching $700 a share, now this morning Amazon is down almost $80 from its recent highs. Did Amazon's business model suddenly change? No, perception changed. Investors do not want to own Amazon right now as they think they can buy it lower.

The other big change, of course, is the fact that the Fed is no longer printing money and using quantitative easing to goose up the market. The fact that easy cheap money is no longer available is a psychological impediment to the market going higher. Continue reading "Market Perception, China And Why Gold Is Going Higher" →

Is Apple About To Break $100?

Posted on by The INO.com Team

Hello MarketClub members everywhere! I've just returned from a short mini break over Christmas and New Year's to see the market crashing down this morning. This should come as no surprise to anyone as I have been talking about the negative chart implications that we were seeing in the major indices last year.

Indices

As far back as November 16th I warned that a weekly Trade Triangle had given a signal to move to the sidelines in the DOW index. That same Trade Triangle signal was followed a short while later in both the S&P 500 and the NASDAQ. The rocky start to the New Year should have come as no surprise to MarketClub members.

Gold

Concern over China along with a weak equity market here in the US was enough to push Gold (FOREX:XAUUSDO) to its best levels in some time and in doing so gave an important Trade Triangle buy signal. The Trade Triangle buy signal occurred on Tuesday, January 5th at $1,081.55. This is the first buy signal in gold in approximately three months and I believe it is one you should pay close attention to. My upside target for gold is the $1,130 to $1,140 area. Continue reading "Is Apple About To Break $100?" →

Top Forex Pairs VS. Gold: Another One Bites The Dust

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


A year ago I wrote a post to compare the top currencies dynamics against Gold inside of the year. Today I want to repeat the experiment to see which one could beat the safe haven and which one couldn't. This time, you will see a modified version of the chart where the inverse metal crosses show not Gold's (last year version), but the currencies' dynamics for easier eye perception.

To remind you of the short list, there are seven currencies compared: US dollar (USD) and 6 components of the US dollar index placed by weight: Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK) and the Swiss franc (CHF). Continue reading "Top Forex Pairs VS. Gold: Another One Bites The Dust" →

The Battle Continues - Who Will Win?

Posted on by The INO.com Team

Who will win the battle between the bulls and the bears that is raging in the equity markets?

Indices

This morning when woke up I did what I usually do - check the pre-market prices. I saw that all three indices were down over 1% for the day. It would appear that 1-2% swings are rapidly becoming the norm in the month of December.

I will be watching the RSI indicator closely today. If you are not familiar with this indicator we have a short video that explains how it works and how you can best benefit from it. I will also show you in today's video why I'm watching this indicator and where the trigger point will come in on the major indices. Continue reading "The Battle Continues - Who Will Win?" →

A Santa Claus Rally Or Will The Grinch Steal December?

Posted on by The INO.com Team

The massive equity market rally on Friday was driven by short covering and a jobs report that was more favorable than the market expected. This week is going to be a battleground between the bulls and the bears and is going to be a very important week, in my opinion. Are the markets going to continue last Friday's strengths or are we going to see a two-way trading market with a Grinch-like ending for December?

Since the beginning of December, I have been warning investors to be cautious as this month tends to be a difficult and volatile month because of the holidays. Not only do investors have the market to worry about, but also the threat of terrorism which I think is in the back of everyone's mind here and in Europe. Continue reading "A Santa Claus Rally Or Will The Grinch Steal December?" →