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Market Commentary

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Gold Bulls Could Pause Ahead Of Fed Meeting

The gold market has posted impressive price action in the past few weeks in the face of a rising U.S. dollar and in this week's case a major rebound in U.S. stock indices.

See Figure 1 below. The gold market made a double bottom a few weeks back at the $1182-83 area from last December. Gold’s rebound, in my view, is largely due to safe-haven buying due to the lack in confidence in fiat currencies as central banks in Europe. Also, China has adopted more easing measures.

Big Players

Hedge funds...

Oct 22, 2014
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Don't Get Trapped By Stop Hunters: How To Survive The Head Fake

Have you ever been in a trade that was a textbook setup and you thought you landed a great trade when all of a sudden it hit your stop, took you out and then it worked and hit your target?  

I am sure you felt a bit of unsettled emotions as this played out before you on your trading screens at your desk.  As a trader you have to get smarter and learn from these little tricks the big boys do to throw us out of our trade. 

Trade Example

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On October 17, 2014 COF gapped down on earnings and look...

Oct 22, 2014
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Alibaba: Look For The "Shake And Bake" Setup

It was "the" IPO to own this year.

You know how you get those "Oriental Trading" magazines in the mail? Where you can buy 250 bouncy balls for 5 bucks?

Alibaba is like that, except on a massive scale.

And after all that IPO hype, the stock ran from 100 the first day it traded and has fallen into a range since.

This chart is a classic IPO base and break pattern. 90 is an obvious level that if broken will drive the stock to attempt to retake 100.

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I would not be surprised if we saw a "shake and bak...

Oct 22, 2014
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U.S. Stocks: The 4-day Trend Is Clearly Pointing Up, But...

The S&P 500 Composite Index rose for the 4th consecutive trading day and finished above its closing prices of the previous 8 trading days on Tuesday. SPX now has recovered most of its loss from 9/19/14 to 10/15/14. SPX crossed above its 200-day SMA but remains below its 50-day SMA, now at 1,966.81. The 4-day trend is clearly pointing up, but the larger trends may be questionable.

NYSE total volume rose 19% to a level 19% above its 200-day SMA. Generally, rising volume confirms the direction...

Oct 22, 2014
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Is This Back to the Future?

My computer world is not any better today than it was yesterday, but I feel better. I did what I could do for my laptop, but it is in a coma. It will require equipment and knowledge beyond my scope to bring it around. Given that I am away from my hometown, I will keep it on life-support until I return. No worries; it is stable enough to wait three more days.

In the meantime, I said I feel better. True, it seems we are “back to the future” with the current market. Instead of talking about a fo...

Oct 21, 2014
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Featured Stories

More Featured Stories
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Trading: Communication Is The Key To Lowering Your Taxes

How many times have we been told that communication is the key to a good marriage or a good friendship? In the business world, we are told that communication is the key to success. I am a big believer in the power of open communication. It’s one of the main reasons that Guardian Accounting Group has a flat fee structure. We never want our clients to be afraid of talking to us about a tax situation because of an hourly fee. Clients are encouraged to call us with all their tax questions and con...

Oct 16, 2014
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Market Profile®: 3 Important Ways It Can Improve Your Trading

You can look at markets and make trading decisions in many ways. Market Profile® has been an indispensable tool in my trading career. While Market Profile is a lifelong study, three characteristics I use to increase the probabilities of making successful trades are areas of acceptance and rejection, trade location, and context.

Areas of Acceptance and Rejection

The most useful characteristic of Market Profile is how it paints the picture of acceptance and rejection of price over time. It show...

Oct 15, 2014
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The Case For Gold: “The Good Old Days”

In a recent interview, Rick Rule of Sprott Asset Management made a strong case that this bear market may be looked back on as “the good old days” in terms of the golden opportunity to invest in the precious metals sector.

Rule said there has been “carnage” in the precious metals markets over the past three weeks, adding to “slow motion” carnage since 2012. He said it is “Difficult for people to see benefit in this type of carnage.” However, he argued, “Three or four years from now, we’ll look...

Oct 13, 2014
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Gaining Viral Profits With Global Health Panics

When fears grip the public about the spread of virulent diseases such as Ebola and other malicious conditions, it is time to assess the situation and enact strategies to enhance safety…health-wise and financially as well.

World health authorities believe that that Ebola and other contagious maladies will have a significant effect on the world economy. The U.S. is enacting emergency procedures and our healthcare industry is gearing up for what will be a difficult challenge for society at large ...

Oct 10, 2014
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What Is Technical Analysis To You?

Technical analysis is widely used in the trading community to forecast the market. There are numerous texts on the subject. There are well known traders and authors who have made famous their particular niche, e.g. candlesticks, point and figure, Bollinger Bands®, etc.  

There’s even a body, the Market Technicians Association that offers a professional designation to candidates who have demonstrated expertise in the subject matter by passing three levels of rigorous testing and abiding by the ...

Oct 9, 2014
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