• 393 days Could Crypto Overtake Traditional Investment?
  • 397 days Americans Still Quitting Jobs At Record Pace
  • 399 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 402 days Is The Dollar Too Strong?
  • 403 days Big Tech Disappoints Investors on Earnings Calls
  • 404 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 405 days China Is Quietly Trying To Distance Itself From Russia
  • 406 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 410 days Crypto Investors Won Big In 2021
  • 410 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 411 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 413 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 413 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 417 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 417 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 418 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 420 days Are NFTs About To Take Over Gaming?
  • 420 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 423 days What’s Causing Inflation In The United States?
  • 424 days Intel Joins Russian Exodus as Chip Shortage Digs In
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Gold In Focus

6/12/2014 5:44:53 AM

Good morning Traders,

When we developed the barometer, the intent was that traders would check it every day before they traded, just as they would check the weather forecast as they'd plan their day, what to wear and whether to bring an umbrella or wear a jacket... So what is the barometer saying?

Stock Barometer Chart

The barometer is a formula that uses 12 variables that traders look at and incorporates them all into one signal as you never know which one will drive the market. So here we see a sunny day, but a storm on the horizon. We don't know if that storm will just be cloudy, or result in high winds, heavy rain, etc. Just as the Japanese named a bearish candlestick a 'dark cloud cover' we are at the same place in the market.

So that leads us to gold:

Gold Options Open Interest Chart

We watch what options traders are doing as part of our making our trades in our gold, oil and natural gas option trading services. This shows option writers preparing for a potential advance in gold. We haven't initiated a Gold Options trade yet, but we're close. If this translates into an advance in gold, that means stocks could get weak. If stocks remain strong, gold is very vulnerable. It's not there yet, I'm expecting about a week and a half before we reach extreme levels of sentiment in gold that will result in the next move initiating... So we're on the watch for a gold trade.

Back to market sentiment, here's data showing as you would expect, the market is getting complacent to an extreme level.

AAII % Bulls minus % Bears Chart

And last but not least, a little indicator that's showing some short term bullishness as the internals of the market weaken, but prices hold up. That's potentially bullish for a quick pop at least.

NASDAQ Advancing Stocks Chart



Back to homepage

Leave a comment

Leave a comment