The product and stocks have been on fire for the past two weeks and I think that now might be the time to take a breather. While I'm continuing for a long time, it's safe to take some money off the table to lock in profits. From just a glance at the chart, we can say that hostility is pointing to some kind of break or pullback in the coming days. I think any day now we are seeing some gain.
Gold ETF Trading – GLD
The Gold ETF is one of my favorite business cars. Using simple trend lines and recent price action, you can see that the price of gold is ready for a pullback. Buying at this level is chasing and it usually means you buy high and panic at the bottom.
Silver ETF Trading – SLV
The Silver ETF is in the same boat as gold to watch. I hope to see some side-pricing action or a pullback.
Natural Gas ETF Trading – UNG
Natural Gas ETF has definitely given everyone a wild ride in the last 6 months. The bear market is still in place which can be seen in the daily chart. So far this week the price has dropped and is trading at $ 11 a support level. This fund could generate a buy or sell signal with my trading model in the coming days so I'm waiting for a clean entry and exit point before boarding the gas wagon.
Crude Oil ETF Trading – USO
Crude Oil ETF dropped its resistance this week but is still fighting to rise to the highs of August. Volume is decreasing as prices rise, which is a bearish index. The USO looks ready for some kind of pullback as it digests this breakout before going further up.
Mid-Week GLD, SLV, UNG, USO ETF Trading Report
What do the general public hear and think about the stock market?
From recent emails, local financial news shows, family, friends etc … all listening to how powerful the market is. Indicators are generating new annual highs and company earnings are better than expected this quarter. All we need to do is buy and life will be great!
In my opinion the market is a good tool to distract and frustrate the general public. All my indicators are telling me that we need further correction before railing higher. The market (smart money) usually expects several weeks of good and bad news, not even a month ago. So the question is:
Has the company's earnings already set the market price? Is all this positive market coverage giving the general public an opportunity to buy on top of this potential market?
Only time will tell the answer. No one knows for sure what the market will do but short-term rice can be predicted with relatively high accuracy. Don't get me wrong, I'm still bullish on the market but you have to think what you think after this good news has become public information. I'm still long in the market, but I'm trimming my positions to lock in profits and still be in the game.