In the past two weeks, commodities and stocks have been pouring on the fire, and I think it might be time to take a breather. While I continue to be on standby, it is safe to take time off from the table to lock in profits. Just take a quick look at the chart and we can see the odds of a pause or callback in the next few days. I think one day we can see some profit-taking.
Gold ETF Trading – GLD
The gold ETF is one of my favorite trading tools. Using a simple trend line and looking at recent price movements, you can see that gold prices are preparing for the callback. Buying at this level is chasing, which usually means you are buying at a high position and panicking at a low level.
Silver ETF Trading – SLV
The silver ETF looks the same as gold. I would like to see some horizontal price movements or corrections.
Natural Gas ETF Trading – UNG
In the past six months, the natural gas ETF has undoubtedly given everyone a crazy journey. The bear market still exists and can be seen on the daily chart. So far this week, prices have fallen and trading prices are at $11. In the next few days, this money may generate a buy or sell signal in my trading model, so I wait for a clear entry and exit point before waiting for the gas station.
Crude Oil ETF Trading – USO
The crude oil ETF broke through its resistance trend line this week, but is still trying to break through the August high. The number is falling and the price is rising, which is a bearish indicator. USO will be prepared for this callback because it will digest this breakthrough before breaking up.
GLD, SLV, UNG, USO ETF transaction report during the week
What do the public think and think about the stock market?
From recent emails, local financial news programs, family, friends, etc… All I hear is the strength of the market. The index is hitting a new annual high, and the company's earnings are better than expected this quarter. It sounds like all we have to do is buy something, life will be great!
I believe that the market is the ideal tool to mislead and defeat the public. All my metrics tell me that we need more corrections before the rebound. Markets [smart money] usually expect good news and bad news several weeks in advance [rather than one month]. So the question is:
Has the company's revenue been included in the market? Will all these positive market coverages enable the public to buy at the peak of this possible market?
The answer is that only time will prove everything. No one knows exactly what the market is going to do, but can predict short-term movements relatively high. Don't get me wrong, I am still optimistic about the market, but as all these good news become public information, you have to wonder what the next step is. I still have a long market, but I have to cut my position to lock in profits and still participate.