At present, worldwide stock markets are bouncing around with no clear recovery in sight. As soon as the media talks up the market, it just as quickly reverses, savaging traders. How can you profit in a downward trending and volatile stock market?
In a previous post in this series, I commented about the need to use either fundamental or technical tools (in other words, evidence based reasoning) to determine when the current market has hit bottom, rather than simply paying attention to the uninformed opinions of the media.
This article is an update on this, using my own software, which implements Loess smoothing. This reveals the real market direction and any turning points.
There’s an adage that you should buy when there is blood on the streets (I believe that Rothschild coined the phrase). This means that the best trades are made when everything looks the blackest, just before a recovery. How do we choose the right time to re-enter the market?
Recently we’ve seen both the price of gold and the AUD/USD currency pair falling. Why is this? Read this article to find out a possible reason.
I recently wrote about the bear trap, where the market suddenly gained optimism, making traders re-enter, only to fall back down harder than ever. So what does the near future hold for the stock market and how can the stock trader profit? This article gives my thoughts on where I think the market is going. If you’ve got a different view, feel free to comment.
After a week of stock market carnage, it looks like stock prices are bouncing back. Is this the start of a recovery, or yet another bear trap which sucks in unwitting investors, only to fall further? This blog posting helps you tell the difference.
Read more…
Oil prices have moved up around $130 per barrel based on limited supply, triggering fears of inflation. This causes price increases in everything from petrol and diesel prices to fertiliser costs. Any increase in fuel costs makes it more expensive to distribute goods. This means that prices will increase.
Consequently, the DJIA fell nearly 200 points, or 1.5%. What is the future for gold as oil prices increase?
The last posting on the price of gold discussed whether the price would go up or down. Gold was at a cross roads near critical support points. This article gives some insight into the short term and medium term direction.
Gold prices continue to be range bound. There has been some downward movement in the past few days, but is this a sell signal, or a buying opportunity?
The long term trend of gold is up. This has been discussed in a previous article on this site. While the US economy and the US dollar are in a precarious state, gold offers a safe haven. For those who doubt the relevance of gold, remember that for the past 6,000 years, paper currencies have come and gone, but gold represents the true store of financial value.
BIS, the Bank of International Settlements gives the same weight to gold as to deposits of cash for banks. Gold is still regarded as a solid asset, unlike equities, derivatives and mortgages.
So we know that gold has a bright long term future, but how about the shorter term? This article discusses the near term prospects for gold.