His Secret To Day Trading Gold (based on thetechnicaltraders article)
"The chart below shows the last 4 intraday sessions for gold using the
GLD ETF. As you can see these sessions had very similar price movement.
This is a 5 minute chart of gold using GLD. I trade it using the 3
minute chart as it allows the best timing for entering and exiting
positions and this 5 minute chart keeps my head clear for the key
turning points because it is easy to get caught up in the one minute
chart noise and miss the important patterns."
"Above is the chart of GLD ETF and some actual trades. I am a very
conservative trader and I like to lock in profits once I am satisfied
with a move or if the chart shows any indication it may go against my
position. I tend to exit trades a little too early but my focus is on
catching the middle section of a trend because they are the safest areas
to trade I think. When there are no swing trading setups I focus on finding these
intraday day trading gold patterns along with SP500 index and Nasdaq day
trades to generate my weekly income."
if actual > forecast (or previous data) = good for currency (for USD in our case)
[USD - Dallas Fed Manufacturing Activity] =The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly
to obtain a timely assessment of the state's factory activity. Firms are
asked by Federal Reserve Bank of Dallas
whether output, employment, orders, prices and other indicators
increased, decreased or remained unchanged over the previous month.
Survey responses are used to calculate an index for each indicator. Each
index is calculated by subtracting the percentage of respondents
reporting a decrease from the percentage reporting an increase.
AUDIO - Chris Vermeulen – Gold Still in a Bear Market, but Don’t Lose Hope
Gold is still in a bear market, like it has been for the
past three years. There’s an opportunity to pick up a quick profit when
it rebounds from its current plunge, but don’t be fooled. It’s all
setting up very nicely for the ultimate bull market that’s getting
closer. Same with the much maligned Toronto Venture Exchange (TSX:V),
which is at record lows due to its composition of miners and resource
Weaker-than-expected U.S. housing data lifted gold
prices from a seven-week low on Monday, but charts suggest that
investors shouldn't get too excited.
Gold got some reprieve on Monday, rebounding from a
seven-week low intraday after data showed U.S. home resales for January
declined to a nine-month low. The data are unlikely to dent the overall
trend, however; gold posted its fourth consecutive weekly decline last
week amid a stronger U.S. dollar and expectations that the Federal
Reserve will raise interest rates later this year.
Meanwhile, the outlook on charts is bearish.
The weekly gold chart has
developed a complex technical pattern with three features: a downtrend
line; strong historical support; certain pattern behavior in the Guppy
Multiple Moving Average (GMMA) indicator.
[USD - Consumer Confidence] = Level of a composite index based on surveyed households. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
After reporting a sharp increase in U.S. consumer confidence in the
previous month, the Conference Board released a report on Tuesday
showing that its consumer confidence index pulled back by more than
expected in the month of February.
The Conference Board said its consumer confidence index tumbled to 96.4 in February from an upwardly revised 103.8 in January.
Economists had expected the index to drop to a reading of 99.1 from the 102.9 originally reported for the previous month.
The Justice Department Goes Hunting For A Gold Price Fix (based on forbes article)
Quaint or corrupt, that’s the question the U.S. Justice Department
and the Commodity Futures Trading Commission have set themselves in
their attempt to prize back the lid on the centuries-old world of
trading metals in London.
Gold is the primary focus of the double-barreled inquiry with silver, platinum and palladium also on the agenda.
What the U.S. investigators hope to find is a smoking gun linking
some of the world’s biggest banks to allegations of market rigging, a
job which European investigators have already dropped.
The starting point for the metals probe, which was launched before
Christmas but has only just been revealed, is the process by which
benchmark metal prices have historically been set in the private world
of London banking.
Deep-Seated Flaws In Benchmark Setting
Similar inquiries into interest-rate setting and foreign exchange
dealing has already revealed deep-seated flaws, some of which can be
traced to old methods of price-setting not tolerated in a modern world
of high-speed financial transactions.
a way what’s happening in the metals market is a case of the old world
of lax London methods, where a man’s word was considered his bond,
bumping into the new world of tight U.S. regulations where business is
done by the book.
European regulators, it seems, were prepared to accept that London’s
way of trading metals was understandable when looked at from an historic
perspective which took into account the fact that systems simply
evolved, no-one designed them.
Fixing The Fix
The solution was the unfortunately-named London Gold Fix, a benchmark
price first struck in September 1919 after representatives of five
London-based banks swapped market information by telephone, a system
which later became a twice-daily meeting to set a morning and afternoon
There have been frequent changes to the way the gold price is fixed
with most gold exchanged these day by electronic means on markets open
24-hours a day.
Other metals have also been traded in what now look to be archaic
systems, including the way members of the London Metal Exchange (LME)
trade certain metals in five-minute bursts of open outcry bidding while
sitting in a ring at the exchange located in London’s business heart,
Mining companies, and metal buyers, had no way of knowing whether the
prices quoted were correct but one Australian mining company became
suspicious when it consistently failed to get the price quoted for the
cobalt it produced as a by-product at its nickel mines.
Trading the News: German Unemployment Change (based on dailyfx article)
Another 10K contraction in German Unemployment may encourage a near-term
rebound in EUR/USD as it raises the prospects for a stronger recovery
in the euro-area.
Why Is This Event Important:
A further improvement in Europe’s largest economy may limit the European
Central Bank’s (ECB) scope to further embark on its easing cycle and
heighten the appeal of the single currency especially as the
member-states take unprecedented steps to mitigate the risk for
However, waning business confidence paired with the slowdown in
production may drag on employment, and a dismal labor report may
heighten the bearish sentiment surrounding the Euro as ECB President
Mario Draghi keeps the door open to further support the monetary union.
How To Trade This Event Risk
Bullish EUR Trade: Unemployment Contracts 10K or Greater
EUR/USD Daily Chart
AUDIO - Oil, Money & Dividends with Mike McMahon (based on fxstreet article)
Mike and Merlin start things off by analyzing the Aussie
Dollar and potential trade opportunities going forward. Focus then
shifts to one of the larger Forex brokers stock as a listener is holding
thousands of shares! Finally, Mike talks about how to capitalize on the
current oil price by looking for strong dividend plays.
Gold Tries to Launch Recovery, SPX 500 Resumes Upward Push (based on dailyfx article)
GOLD TECHNICAL ANALYSISPrices are attempting to launch a
recovery from support at 1197.86, the 61.8% Fibonacci retracement. The
reversal requires a push above a major resistance cluster in the
1209.67-18.80 area, marked by a falling channel top, the underside of a
recently broken trend line and the 50% Fibonacci retracement. If a break
does materialize, the next upside barrier comes in at 1239.73, the
38.2% level. Alternatively, a turn below 1197.86 aims for the
intersection of channel floor support and the 76.4% Fib at 1171.96.