Dhour

By John Winston

 Alot of people have made a ton of cash from gold futures using the stock market. Only here can people with limited capitals make a lot of money in no time.

many experts would claim that gold futures trading could only be as risky as you want to make it.

If you want to get rich, have good strategies and get yourself out there.

What is the reason for futures trading and how is it done?
There has been a growth of interest in the futures side of the market, particularly with transactions committed in intra-day fashion, i.e. day-trading. If you want an affordable trade in a wide variety of markets then we have the answer for you.

You can trade futures in both up and down markets. If a trader suspects the market to go up, he will buy a contract and sell it, also known as a long trade. Not so, if a trader feels the market will go down, he’ll most likely make a short trade by selling a contract and then exit by buying another one.

This aspect of gold trading can be rewarding, but it’s risky. If you understand stocks and trends, you may do well in this field.

you do your research and prepare yourself with the necessary knowledge and skills to successfully execute transactions.

To subscribe to my Free Techncial Trading Techniques click here: http://www.GoldAndOilGuy.com

The Top News Headlines From Around The World

Gold at a Monthly Crossroads and We Ask, Which Way Now?

By Mark Brown A

 Gold traders and investors have been waiting for a clean break above Gold’s nominal all-time high, recorded back in March 2008, but the process has been anything but sure and swift.

Having risen approximately 300% since the start of its bull run in 2001, Gold has far outpaced the investment gains in virtually every other investment class, including stocks, bonds, real estate and cash. Gold bugs feel certain that this time will be the ‘big one,’ and that the precious metal will likely hit $2,000 - $3,000 an ounce, if not higher. Jim Rogers and many other experts believe that a bull market in gold and other commodities will last for another five to ten years due to high demand from developing countries. The deficit spending of huge amounts across the nations have forced the investors to lean towards Gold,considering it to be safe and a good inflation hedge. So, there are plenty of fundamental reasons for Gold to continue to march higher over the next few years, no argument there. However what about the chart technicals - what are they saying to us currently? Are there sound technical reasons why traders and investors should prepare to buy more gold on a confirmed breakout above the March 2008 high - or not? Let’s have a look at the long-term chart of cash Gold and see what the monthly price bars are telegraphing to us.

Gold is a valuable asset.

There is no doubt about the long-term nature of this uptrend in Gold - it’s very much intact, with a current price far above both its 20 and 50-month exponential moving averages even in the upswing they have balanced a great share amongst themselves.One Aroon (14) trend intensity indicator that has recently swung to the extreme bullish end of its range, and a Metastock CS Scientific expert advisor (see gray ribbon at bottom of chart) This also confirms that a strong trending move is present. There is one very noticable clue on this chart that could be a down side. It is the current status of the RSI. No.14 indicator, one that is exhibiting an unusually bearish amount of negative price-momentum divergence. Even though Gold actually set a new cash high before pulling back intra-month (in September 2009), the RSI No.14 failed to confirm the new high, and this should be something that every Gold trader and investor needs to be aware of. Despite that anomaly, the charts show evidence to remain bullish; however you see it, this commodity could be making a surge in the not too distant future - maybe not today, but very soon.

There are a couple of other factors we need to consider here, as they factor directly into the decision-making processes of those considering long entries in Gold now; the first of these is what is known as the ’seasonal’ pattern in Gold. Gold has a very good record that has been documented with the highest yearly costs in the latter months of every calender year, and this year isn’t any different. October tends to be a negative month for gold, losing some of its position gained from prior months, a point of contention for some opponents. At times it just goes sideways in the beginning of November before it turns sharply duriing the middle of November until the end of December.

If this seasonal factor is ‘in the tank,’ so that this year, we are likely to see the next Four to Five weeks, a retracement of the gold.

One more fundamenta factor that has to be worked is with the investment posture held by “large traders” (this is also known as “hedge funds”), the ‘Commercial’ traders and the ‘Speculative’ traders, ranked according to their respective commitments to the long side of the Gold futures market. You will find that the Large Traders are in for the long term as indicated by COT figures and that commercial interests may be only marginally long. The future industry has attracted small traders that are loyal to staying active in the market. To better understand these commitment biases, you must first understand that the Commercial interests generally do the bulk of their buying only after Gold sells off. The more it falls, the more they buy, effectively “scaling in” to their desired positions over time. Big traders trade using trend-following methods and they buy when momentum is driving prices up. Guess who is selling them their Gold? Indeed, commercial interests have fed it up the chain. Small traders often trail the strategies of larger traders, but other times, they may act independently. The COT structure that exists today, seems to imply that a short-term Gold sell-off is due, based on the greatly lopsided commitments throughout the varying market participants listed above.

Putting all of this technical and fundamental information together, here are some general conclusions we can arrive at concerning Gold:

1.There is negative price-momentum divergence on the chart for gold, indicating that hedge funds are too bullish and a sell-off in gold futures is probable. It is very interesting and overwhelming to work together with some principles (for more than 30 years) Typically, gold is not strong in October.

II.After a weak time in October, gold will probably have a strong rise during the rest of 2009. It may close clean and high above the gold price of March 2008 - $1011.twenty-five The year 2010 may also see further gains in the yellow metal, as the quarterly price cycles IT IS MORE USEFUL FOR SAVE OUR MONEY AND OUR TIME THANKS FOR THIS LETTER
NOT FOR ME ALSO ALL USER’S FOR VERY USEFUL FOR THE ARTICL A strong crossover has just happened. This confirms that big gains are likely to be made in Gold in the years to come.

Overall, the rest of 2009 should be and exciting, memorable time for gold traders and investors. We must be prepared for what this unusual commodity marketing is sending our way. We possess the tools such as charts and other basic factors that provide us with insight.

For more information about my analysis please join my free trading newsletter: www.ETFTradingPartner.com

Mark Brown

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