Stock Market Resource » Currency Trading

How to Play the Current Silver, Gold And Dollar Reversal

Kevin — Thu, 06 Jan 2011 12:33:01 +0000

How to Play the Current Silver, Gold and Dollar ReversalJanuary 5th, 2011

This has been an interesting week for traders and investors as precious metals melt down on the back of a rising dollar. Equities on the other hand bucked the trend and moved higher as they get bought into earning season. Once the earnings start to be released we should see the market get sold on the good numbers and retail traders will buy into the good numbers as the smart money selling their shares while there is liquidity in the market.

Speaking of pullbacks, I have been talking about silver and gold forming a top. A couple months ago in November I saw the first warning sign of distribution selling in the precious metals sector. There was a large drop in price with heavy volume which is a warning sign that the BIG MONEY is starting to roll out of that crowded trade (precious metals). The thing with tops is that they take a long time to form and become very choppy.

Since the November highs both silver and gold have more or less traded sideways. They never really went much higher and that’s because the big money is distributing their shares to smaller investors slowly overtime (retail buyers/average Joe’s). They try not to scare investors off so they sell their positions in chunks. What most people do now is that these sellers want higher highs to forming because once a new high has been created everyone become bullish again buying more on the breakout. It’s these waves of bullishness that the big money sells into which is why you see heavy volume after a new high has been formed.

Let’s take a look at some charts….

Silver Daily Chart

The silver chart clearly shows the bull market (markup phase) and also the distribution phase taking place now…. If things go according to plan then choppy/lower prices should take place in the coming 1-4 months.

Gold Daily Chart

Gold is doing the same thing as silver and I don’t think the selling is over yet.
Watch today’s video and price action by clicking the Trading report link:

TradingReport

Dollar Daily Chart

Dolar Daily Chart

The past 12 months it seems like everything has been a dollar based play. Meaning if you were to pull up a 1 minute chart of the dollar and a 1 minute chart of the SP500 or Gold, you would now that when the dollar moves up stocks and commodities go down and vise-versa. That being said the SP500 has started to move up with the dollar in the past month so there is a shift happening but it’s a slow change and is not much of a concern for gold right now.

If the dollar starts another leg higher it will make for good timing as market sentiment is at an extreme and earning season is here. That typically means lower prices in stocks and commodities.

Mid-Week Silver, Gold and Dollar Trading Conclusion:

In short, in the next 1-4 weeks I am bullish on the dollar, and bearish/neutral on stocks and commodities. The reason I’m neutral is because I don’t like to short things in a bull market phase as they can keep going up much longer than we think at times. Rather hold my strong positions and wait for a correction to buy/add once I feel the selling momentum has stopped later this year.

I would not be surprised if we get a 4-10% drop in the next few weeks in both stocks and commodities, but until I see a clear roll in price I will not be looking for any trades to the down side. I’m not in a rush to pick a top/short the market but if we get a setup we will take a small position to play a falling market. Be sure to visit the link to today’s video which is posted in the gold chart section above.
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Chris Vermeulen

Effective Advantages of Learning Forex Trading

Kevin — Wed, 02 Dec 2009 22:26:42 +0000

The condition of forex markets are not constant. They are equipped with better training on handling demands and stress compared to those people who solely rely on their experience and instincts. These are important common terminologies that should be learned by the traders before getting started.

There are developed techniques on how to solve these problems which are also discussed. In addition to this, beginners also learn about trading psychology on how to deal with discipline, patience, stress, risk management, and commitment. If you are reading forex reviews, then you will learn that those traders who have gained success in forex trading business are those who have undergone forex trading training. You will not survive such a high-risk environment.

It should always answer your needs and survival of the risks involved in forex trading. Forex trading training also tackles about market mechanics, forex trading software tools, reading forex charts, closing a trade, and knowing the best bidding time. In this manner, they are also oriented on making proper analysis and enhance their decision making in a more accurate way in times of selling or buying forex.

The things that are learned in the forex trading training also involve the basics about order types, margins, bids, leveraging, and rollovers. Forex trading courses can be acquired through live seminars, books, subscription services, classrooms, or online trainings. Make sure to weigh everything before finally deciding to get the type of forex trading training that you want.

Since charting is considered the basic of forex trading.However, these also have advantages and disadvantages. Beginners should first focus on charting because the most important factors in forex trading are being studied. It also reduces the risks of losses. If traders understands and read forex charts properly, then they would be able to identify market problems. It explains the common mistakes that were done before that should be avoided. Take note, these important features should become a part of the online class or real life forex trading training. It could change in a wink of an eye. Therefore undergoing forex trading training can prepare you on how to handle such fluctuations.

Forex trading training also teaches forex market history. So, forex trading training can really give benefits to beginners. Forex trading training helps in molding the trader’s skills and sharpening it especially on forex market internal works, it teaches the beginners to make forex charts. It is not ideal to enter into forex trading without the proper knowledge.

So, forex trading training is one of the most important aspects to be done. Forex trading training involves learning different forex trading terminologies, processes, and concepts. These are essentials that would help a beginner to immensely gain confidence in trading forex. Always keep in mind that forex market decisions are done in accordance to real time which are usually within a matter of seconds.

This will significantly increase your chances to achieve greater success. These are the best characteristics that beginners should acquire because the forex trader’s future depends on their ability to take charge of forex market order flows. Forex trading training helps especially the beginners in tracking the reasons why market shifts happens. It will be a very big mistake if you just jump-in to forex trading without proper orientation. It teaches the traders to use their head when doing the trade instead of their heart.

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Various Food Sources Of Omega 3 Fats That You Can Take To Overcome The Deficiency

Kevin — Sat, 03 Oct 2009 07:10:28 +0000

You might disagree but hear me out on this, majority of the people in western world are deficient in essential omega3 fatty acids. Since, omega3 fats are not produced internally by our body but are very vital for our overall health and development. It becomes very important for us to eat high quality food sources omega 3 fats.

Let us find out the various food sources of omega 3 fats that you can take to compensate the deficiency.

Flaxseed oil: It contains only ALA type of omega-3 fats and not DHA and EPA fats (more readily absorbed fats by our body). Our body can convert ALA to EPA and DHA; but this conversion process is very complex and is not efficient. Studies says only 5% of ALA can be converted to other two fats which our body needs the most. This means we have to eat tons of flaxseeds to overcome the deficiency.

Meat: Grass fed cattle or lamb contains high DHA and EPA fats. But since these days, cattle are not grazed on their natural diets instead are fed with grain to fatten up them quickly; beef thus generated does not have higher levels of DHA and EPA.

Fish: It is the number one natural food source with omega 3 fats. Cold water fishes like Salmon, Tuna and Mackerel are a rich source of these essential fats. But because of increasing water pollution in ocean waters, toxins levels found in the fishes is very high. And who wants to compensate the deficiency at the cost of various health hazards like mercury poisoning, etc. Farm fed fishes are also not effective because they are not fed on their natural diet.

Fish oil: It is extracted from healthy and oily fishes. It also under goes various refining processes to remove out the toxins from the oil. It is considered as the best food source of omega 3 fats because with its consumption we get high DHA and EPA levels and that too without any worries of chemicals and contaminations like mercury, lead, arsenic, PCBs, etc.

Fish oil is any day better choice as compared to eating fish, because –

1. It ensures that you are taking omega 3 fats regularly and in optimal quantity.

2. It ensures that you do not accumulate harmful chemical and toxins via fish.

3. It is cheap i.e. its available at a reasonable price.

4. It is simple, easy to consume and does not require any preparation time.

So, now that you know food sources omega 3 fats, it is time for you to start looking the best omega 3 food source for you to maintain good health.

I personally am taking an effective fish oil supplement that under goes molecular distillation process to ensure that all harmful toxins are eliminated and end product is of high quality pharmaceutical grade.

To learn more on high DHA and natural fish oil supplement, visit my website.