With the Fed continuing to ramp down its QE programme, a bearish technical set up, and a lack of CPI inflation, the outlook for gold is bearish, and therefore gold is still likely to go to $1,000 before it goes to $2,000.
Since reaching an all-time high of 1,687.18 on 22 May the S&P 500 has established a downtrend which so far has seen the index fall 4.7%. This article shows the new trend in the major US stock average and examines two potential short candidates that could take advantage of the new market downtrend.
The article ‘Energy sector provides decent trading opportunity’, published last week, outlined a potential trading opportunity in the energy sector ETF XLE. The fund had broken out above a key resistance level and established a well defined uptrend. Now however, the fund has begun to advance strongly and it’s time to safe-guard our profit.
While we tend to focus more on the short and intermediate term, we notice that there is a lot going on in the long term time frame. Most obvious is the breakout above the top of a long-term trading range.
The energy sector within the S&P has just broken out above previous resistance, and the technical setup suggests that it now provides a decent trading opportunity with a defined exit point should the trade fail to work out.
Having dropped 44.8% from its all-time high on 21 September 2012 Apple encountered major support in mid-April at around $380. Since then the stock’s advance has been capped at around $466. However, if it can breakout decisively above this level it could be potentially very bullish for the stock which is already attracting both value and income investors.
Until last month the technology, materials and industrials sectors within the S&P 500 had been trending down while other sectors such as health care, consumer staples and utilities had been trending up. Now however, the trend appears to be reversing and the sectors that had lagged behind are breaking out to new highs, something which presents a buying opportunity for traders and investors.
Yesterday’s article focused on an intermediate term trend following trading strategy that makes use of both trend channel analysis (TCA), and moving averages. Today’s article applies the same trend following principals to shorter-term market movements, and looks at possible trading opportunities that exist right now.
The words “perfect trading strategy” will mean different things to different people. In this article however, the perfect trading strategy is one that combines a systematic, rules based approach with strict risk management. This article explores these elements and searches for possible trading opportunities.
This regular column reviews the condition of several different markets. This week’s column examines the chart pattern that has formed in crude oil, the best performing sector in the S&P 500 (the financials), and the powerful uptrends that exist within the Wilshire 5000 and the Nikkei.
Over the past five years the price of a gallon of gasoline in the US has formed a series of lower highs and higher lows. In doing so this vital commodity has traced out a large triangle pattern that could provide a profitable trade.
Next Wednesday, May 1, begins a six-month period of unfavorable seasonality, of which we are commonly reminded by the saying “Sell in May and go away.” Research published by Yale Hirsch in the Trader’s Almanac shows that the market year is broken into two six-month seasonality periods. From May 1 through October 31 is seasonally unfavorable.