"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 1 day Why Are Investors Overlooking Gold Stocks?
  • 1 day The App That Democratized Trading Is Now Worth $5B
  • 1 day Super-Cycles: Why Gold Is Set For A Breakout
  • 1 day U.S. Sanctions Russia For Election Meddling And Cyberattacks
  • 1 day Snap Shares Tank Over ‘Slap Rihanna’ Campaign
  • 1 day How Low Can Bitcoin Go?
  • 1 day Amazon’s Japan HQ Raided In Anti-Monopoly Push
  • 2 days Is Barrick Gold Close To Finding A Bottom?
  • 2 days Morgan Stanley’s Top 10 Short-Term Stock Picks
  • 2 days China: The Land Of The Ultra-Rich
  • 2 days Alibaba Soars On Reports Of China Listing
  • 2 days What Killed Toys ‘R’ Us?
  • 2 days SEC And IRS Take An Aggressive Stance On Cryptocurrencies
  • 2 days Bears And Bulls Face Off In Gold Markets
  • 3 days Bitcoin Is Winning Over The Housing Market
  • 3 days Markets Slide Sideways As Trade War Fears Linger
  • 3 days Why Aren’t Millennials Investing?
  • 3 days Bitcoin And Banking: The Next Mobile Payment Revolution
  • 3 days SEC Cracks Down On Silicon Valley’s “Disruptive Tech”
  • 3 days Wyoming Eliminates All Taxation On Gold And Silver
Amazon’s Bid For A Monopoly On Everything

Amazon’s Bid For A Monopoly On Everything

Amazon started in e-commerce, but…

The App That Democratized Trading Is Now Worth $5B

The App That Democratized Trading Is Now Worth $5B

Investors and customers have rallied…

Chris Vermeulen

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

More Info

Gold and Stocks Rally But is it Time For a Little Pullback

It has been a very interesting week thus far. Monday kick started traders with a heart pounding equities sell off which sent money into the US Dollar, precious metals and bonds as the safe havens of choice.

A lot has happened this week on a technical analysis basis which I can't really show in a written report like this. But can do so in detail within my video newsletter. There are just to many charts required and layers of analysis to cover... But I can cover some of the points and my thoughts using the charts below:

SPY 30 Minute Intraday Chart

This chart shows the volume traded at various price levels for the SP500 index. These high volume levels act as support or resistance depending if you are above or below them. On Wednesday we had large gap higher into a resistance level which the market could not break through. So I am expecting to see the market take a pause and fade back down to fill part or all of Wednesday's gap window.

While most gaps tend to get filled. Gaps that occur right at the beginning of a new trend when momentum is strong. They generally do not fill all the way down to the bottom. I expect a couple days of sideways to lower price action. Buyers should step back in and send the market higher next week if this trend is to continue.


GDX - Gold Miner Stocks - Daily Chart

Gold stocks have been underperforming the price of gold bullion for several months. This typically is not a strong sign for physical gold prices. That being said I do feel the majority of investors are seeking true safety and want to own real gold and not some highly leveraged gold stock. This to me is more of a risk off trade for global investors and it explains the performance.

From the recent price action shown on the GDX chart I am expecting to see prices trade sideways or lower in the coming days. A sideways move would actually be bullish and would signal a possible breakout to upside. So that is what I am hoping will unfold in the coming days/weeks.


US Dollar Daily Chart

The dollar continues to get sold at a tremendous rate and the Fed is devaluing the currency as quickly as they can trying and save the world one dollar at a time...

The trend is strongly down but it's starting to near a point where we should start to keep a closer eye on it for signs of a reversal to the upside. When the dollar makes a move higher and starts a rally it will put downward pressure on stocks and commodities. We must be prepared to move our protective stops ups and possibly take advantage of falling prices in the near future. Until then remain long equities and commodities.

US Dollar Index

Mid-Week Trend Conclusion:

In short, it looks as though stocks and commodities are in favor again. Monday's panic sell off looks to have shaken the masses out of the market and the big money players were buying up all the shares they could. Members and myself are sitting nicely in our long positions and this could be the start of something exciting.


You can get my Pre-Market Trading Analysis Videos, Intraday Chart Updates and Trade Alerts with my Premium Newsletter: http://www.thegoldandoilguy.com/free-preview.php


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter