Greek Elections create uncertainty in the markets

With the Greek Election being held on 6/17/12 there is expected to be lots of volatility in the trading week ahead. Analysts have viewed the Greek election as a potential turning point for Greece. This election could result in Greece’s eventual departure from the euro zone. Central banks from major economies are ready to take steps to calm financial markets should the outcome of the Greek elections create a market storm.

With the uncertainty that looms ahead, several firms have already started reducing their exposure to European Assets. During times of major volatility and uncertainty in the market, it is best to implement a different approach. Although I feel it is best to just sit on hands and wait it out till the smoke clears. For the trader who must trade the markets this week I recommend you take on lighter positions and be more selective with your entries.

With that being said it must be noted that Silver prices did not fall as much as some expected following Spain’s $126 billion Eurozone bailout on last Sunday 6/10/12. Many investors planned for a spike in the U.S. dollar following the bailout, hurting silver prices. With everyone’s attention focused on the Greek elections this Sunday, silver prices might be the beneficiary of any more turmoil and bailouts overseas.

Looking at the Daily Silver Chart below we can see the repeated Higher Lows and Bottoming Tails. Price has made several attempts to close below the 20 MA but keeps rejecting off of our trend line and rallying to close back above the 20 creating our 5th Bottoming Tail. These are signs of a bullish reversal in the works. Since this is more of a swing trade I have a more long-term approach for this trade if we can clear the area of resistance on the weekly chart at the 20 MA. Our entry will be just above $29.05 with our stop loss at $28.07 just below the trend line and Support level 1. Our first target is at $31.00, once price reaches our initial target we will see how price reacts at the weekly 20MA. Stay Tuned!

Canada O Canada USD/CAD Trade update 6/3/12

We have hit all of our target levels  for TP1 & TP2 on our both of our USD/CAD long positions. We are now trailing Bar by Bar on the daily chart, as we are expecting a correction since price action on the weekly has gotten extended and far away from the MA’s as a result of price action being little overbought on the weekly.

Gold Finger is back in love again

Gold is a commodity that has great potential to go higher in the near future along with the rest of the other commodities due to their necessity in our everyday lives. My belief is as things get worse economically around the world more and more countries will start abandoning the $ as the worlds reserve currency, by reducing their holding in US securities and increasing their holdings in commodities like Gold. For some countries this has already become a reality. This presents an opportunity for the day to day trader to take advantage of any moves to the upside that may present themselves in commodities like Gold & Silver. Although I take trades on both the long and short side, as the world goes through the financial crisis that now has now become commonplace. I have given extra attention to bullish signs that present themselves in the Futures Market.

Notice the Higher low on this monthly Gold chart. Price action has started to show bullish signs this month after failing on the three separate occasions to break the higher low that has been formed at the $1530 level.  I have long term targets at the prior high at around $1900 but price has to clear the monthly 8 MA.

With the weekly Gold chart below we can see how we got 3 Bottoming Tails after price bounced off of the same level where we recently got a Triple Bottom( you might have to click on the picture to get a clear picture of the candle formations I am referring to). These candlestick formations are all very strong bullish reversal signs and the fact that we got all these reversal signs on the weekly chart gives them even more significance which means we should pay even closer attention to this commodity along with Silver. If price clears the weekly 20 at around $1656 we will have wiped out all of last months price action and should have no problem reaching the prior high on the monthly at $1900.

Notice the strength the bulls have shown on this daily Gold chart. The last candle that we got on the daily chart is one of the bullish candles we have seen in a while from the bulls. This candle indicates that the bulls might be ready to take over and flex their muscles for a while in an attempt to reverse the current trend.