Commodities and stocks have been set on fire in the last two weeks and I think it might be time to breathe things out. Although I will stay for a long time, it is safe to take some money off the table to make a profit. If we look at the graphs quickly, we can see that the chances indicate a kind of break or withdrawal in the coming days. I think we can see a profit every day now.
Gold ETF Trading – GLD
The Gold ETF is one of my favorite commercial vehicles. By using simple trend lines and looking at the recent price promotion, you can see that the gold price is ready for a pullback. Buying at this level is chasing and that generally means that you buy at the high and panic at the low.
Silver ETF Trading – SLV
The silver ETF appears to be in the same boat as gold. I expect to see some lateral price action or a pullback.
Natural gas ETF Trading – UNG
The Natural Gas ETF has certainly given everyone a wild ride in the last 6 months. The bear market is still present, which can be seen on the daily chart. So far this week the price has been broken down and traded at the support level of $ 11. This fund can generate a buy or sell signal with my trading model in the coming days, so I am waiting for a clear entry and exit point before I jump on the gas truck.
Crude oil ETF trade – USO
The crude oil ETF has broken out above its resistance trend line this week, but is still struggling to rise above the August high. The volume decreases while the price rises, which is a bearish indicator. USO seems ready for some kind of withdrawal because it digests this outbreak before it gets higher.
Mid-Week GLD, SLV, UNG, USO ETF trade report
What does the general public hear and think of the stock market?
From recent e-mails, local financial news shows, family, friends, etc. I only hear how strong the market is. Indexes reach new annual highs and corporate earnings are better than expected this quarter. Sounds like all we have to do is buy and life will be great!
Well, in my opinion, the market is the perfect tool to mislead and frustrate the general public. All my indicators tell me that we need more correction before we score much higher. The market (smart money) generally expects good and bad news a few weeks or even a month in advance. So the question is:
Are corporate profits already priced in the market? Does all this positive market coverage get the general public to buy here at this possible market top?
The answer is, only time will tell. Nobody knows for sure what the market will do, but movements in the short term can be predicted with relatively high accuracy. Don't get me wrong, I'm still bullish on the market, but with all this good news becoming public information, you have to wonder what the next step is. I am still on the market for a long time, but cut my positions to make a profit and still stay in the game.