It looks as though the Nasdaq is about ready for another leg lower. Watch these key resistance levels for a short trade this week.
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I did a short video a while back on momentum trading gold and wanted to share it and post it in the members area of the website for you to view. It’s short and basic, but useful.
Current snap shot of gold trend…
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I just posted a timely article talking about how the market leaders (groups/sectors) which lead the stock market higher have been met with strong selling. All of March we saw some distribution selling but the past few weeks it is clear that the big guys are unloading massive amounts of shares to the general public as they no longer want to hold this growth and momentum stocks.
This is of great concern to me and anyone long stocks in their portfolio need to read my article about this.
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ETF Trading Newsletter: In early February I started watching the CORN ETF very closely for a possible new bull market starting and a long entry point. Many of the other commodities had already posted strong rallies while corn sat on the side lines.
The Corn ETF is designed to follow the price of the continuous corn futures contracts. This commodity looked as though it was forming a base (launch pad) for the new rally and possible major bull market to start.
This post walks you through each step of the way from entering the Corn ETF trade, adding to a winning position, tightening our stops, locking in partial profits at our first price target etc.. In fact myself and subscribers are still long the Corn ETF as of today with my ETF trading newsletter.
ETF Trading Newsletter – CORN ALERT #1
We have been watching the commodities index rally for a few weeks now with natural gas, coffee, sugar, gold, silver and several others jump in price. We have been watching the GCC ETF which is a basket of several commodities to get a feel for the commodities market as a whole.
While most of the commodities have posted some solid gains, CORN has yet to pop in price. Corn looks to be forming a stage 1 basing pattern and the volume/money flowing into this fund suggest new money is moving into corn because it looks as though it will be the last to pop and rally in price.
This is similar to how we entered the silver trade a few weeks back. Everything else in the precious metals sector popped and silver lagged giving us a high probability setup.
Both the short and long term the charts of corn look bullish. As usual I will lock in some gains if we get a pop in the commodity, then let the balance ride with a break even stop. If corn is entering a new bull market phase (Stage 2) I want to hold some long term. There is potential for a 19%-30% rise in value.
Corn Trade Information:
Buy CORN etf, Stop $29.90, Downside Risk 6%, Portfolio Size 6%
ETF Trading Newsletter – CORN ALERT #2
New CORN Trade Order Pending
During the past couple weeks we have seen the CORN ETF trade sideways with fading volume. Recently we have seen a couple strong buying days in CORN which I call GET-READY spikes. These typically indicate some big money (insiders) are accumulating a position ahead of good news.
We are currently long CORN already and in the money, which is why I like this second setup even more. Because we already have a profit buffer, making the risk here is lower than normal. If you have ready some of the market wizard books you will also pickup on how the most successful traders pyramid up (average up) in winning trades.
My Plan Of Attack: I only want to buy on strength here focusing on entering the trade once is breaks a previous pivot high which in this case is: $34.06
Place a Buy-Stop order at $34.06, GTC (Good Till Canceled), 8% of portfolio position size
This type of order will enter you into the trade if price rallies and breaks that price point so you do not need to sit around and watch the charts. If you do not know this type of order just Google it only or call your broker. It is a very simple and basic order type.
ETF Trading Newsletter – CORN ALERT #3
CORN Position Added
This afternoon our CORN trade order was executed. Yesterday we set a Buy-Stop order so we get entered the commodity if price starts to breakout to the upside. These types of order are just like a stop order in respect that you just enter it and the market and broker do all the work after that.
This is why trading with a plan/strategy is much easier and less stressful. If you have a plan, do the leg work and execute it, things do not seem difficult or stressful. Problem is most traders don’t have a plan and even if they do, most times they don’t follow it. The result is a confused, stressed out trader/investor second guessing their every move.
I have updated the portfolio in the member’s area so you can review positions and protective stops.
ETF Trading Newsletter – CORN ALERT #4
CORN Position Adjustment – Locking in Gains
CORN has been moving in our favor for about a month now. Today’s pop in price has reached my short term measured move using fibonacci extensions and I feel it is time to lock in some gains and move our protective stop to breakeven.
We entered this position twice and your average price per share should be around $32.96.
I am moving my stop to breakeven and selling half of my position today. Current price is $35.10, as we are up 6.5%.
See chart below for a visual:
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You know it and I know it, trading is extremely difficult, time consuming and can be expensive if not done properly. What I have shown you above is verbatim of what subscribers to my ETF Trading Newsletter received thus far for the corn trade.
I do updated and show the charts live each day in my daily video forecast which members have access to but that is just to keep everyone up to speed on the trade to help manage their emotions and prepare for what it to happen before it happens.
Consider joining my group of happy traders today at www.TheGoldAndOilGuy.com
Consider joining my group of happy traders today at www.TheGoldAndOilGuy.com
Ross Clark of CIBC & Technical Analyst of Institutional Advisors Talks Technical Analysis with Chris Vermeulen
Ross Clark has specialized in technical analysis of the markets since the 1970’s. As a charter member of CompuTrac and then user of TradeStation he has developed trading programs and proprietary indicators. It is his belief that market timing and shifts in asset allocation can add value to investment portfolios.
Ross and Chris talk about technical trading mastery and Vermeulen’s New Book that covers exciting topics like cycle analysis and automated trading systems in a live radio broadcast last week which is now available online.
Chris Vermeulen – ETF Trading Newsletter
The bitter truth about what may happen to gold is not all that exciting and likely don’t want to know, but you need to understand what is unfolding as we speak…
Long story short, the prices of bonds look as though they are about to rally once again. Mounting fears of a stock market correction has money flowing into bonds which in turn will drive interest yields lower yet gain. But the BIG PICTURE of what he FED said the other week about how they plan to raise rates in 2015 and cut QE down to $55 billion per month hurts the long term outlook for gold.
This news may not sound that important, it actually is and undermines the price of miners, silver and gold in a big way.
Find out why gold is falling and the threat that could trigger a much larger meltdown in the long run with my gold forecast video.
ETF Trading Newsletter
As we all know, there is always a bull market somewhere…
In this video report I will share with you the next three big investments for 2014 which are unfolding as we you read this. And Precious metals (gold, silver & miners) are only one of the bull markets…
You have not heard anything about these sectors on CNBC, radio, and no one is writing about them. Because of this, it has me really excited because the more people that are caught off guard with a move the bigger upside potential there is.
All you have to do is watch the video to find out…
Watch Video Now:
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