Tag Archive: volatility

Building a New Base

The gold market has seen a bit of a pullback from recent 6-year highs. The metal dipped under the $1500 level yesterday before bargain hunters stepped in today to propel the market back above this key level. Recent price action suggests that the market may be in the process of building a new base which could potentially act as a new, major level of price support.  A series of higher lows also lends credibility to the notion that a firm uptrend is in place. Recent... Continue Reading

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A Prime Example- Volatility Spike

Over the weekend: President Trump alluded to a breakdown in ongoing U.S./China trade negotiations. The U.S. is now set to impose further tariffs on $200 billion of Chinese goods, taking the current rate of 10 percent up to 25 percent. Talks were scheduled to continue this week in Washington, although it is now unclear if scheduled meetings will take place. Markets are on edge over the news, as stocks had seemingly priced in a deal being done in the coming weeks. Volatility Spike: Today, the... Continue Reading

Key Divergences Point to Higher Gold

Following some recent declines, the gold market has not accomplished much thus far in 2019. Although many of the so-called “experts” may pounce on this fact, we see it as a significant positive for the market. Not only is it a positive, but it could potentially be indicative of a major rally on the horizon. Here’s why we can count on gold resilience: Gold has endured a stronger dollar: Typically, the dollar and gold have a negative correlation. That is to say that when the... Continue Reading

Now is the time to buy dips

The gold market was quiet in trading today yet gave up little ground as the metal backs off recent highs. The market is just below key resistance at the October highs in the $1252 area and could be gearing up to punch through that level to the upside. Stocks, on the other hand, continue to see increasing volatility and declines. Recent price action in stocks could simply be a drop in the bucket of further declines that could take place in the weeks and months... Continue Reading

It’s Not Too Late

Stocks are continuing their recent plunge today, with the Dow Jones Industrial Average down over 600 points in mid-day trade. Market volatility, as measured by the CBOE’s VIX index, is spiking today to the mid-20s and investors appear to be getting panicky as no bottom has yet been found. The recent selling in equities could, however, be just the tip of the iceberg and a far more significant decline could be seen in the weeks and months ahead. Despite some recent positive commentary on the... Continue Reading

Stocks or the Dollar

The last several weeks have seen a resurgence of market volatility, and many investors are wondering if there is more to come. Through a very bumpy October for equities, gold made some solid strides higher as risk aversion increased. Markets have been a bit calmer in recent sessions, and the yellow metal has seen some declines taking it back to the $1200 level. The recent pullback is not due to the possibility of stocks stabilizing, however, but rather is due to a stronger dollar. The... Continue Reading

Don’t Fight the Fed, but Don’t Ignore It Either

There is an old saying that says “Don’t fight the Fed.” This saying is typically directed at stock market bears that remain bearish equities even as the central bank lowers rates or maintains ultra-low levels of rates that encourage risk taking. The phrase happens to make a great deal of sense, as the Fed is essentially the most powerful financial institution that there is. The Fed has the power to control the money supply, and to “create” new money out of thin air. If the... Continue Reading

Heed the Warnings

The last couple of weeks have seen rising stock market volatility as numerous issues weigh on markets and investor sentiment. The declines seen in Chinese markets cannot, and should not, be ignored. The Shanghai Composite is off some 25 percent since the beginning of the year, and more downside could potentially be in store. The Chinese economy has already shown some key signs of slowing, and if it does in fact slow further the effects may be felt all over the globe. Chinese officials have... Continue Reading

Remember the VIX?

There has been little in the way of market volatility in recent months, and investors appear to be growing increasingly complacent as the markets look to make fresh, all-time highs. Although markets spent some time in correction territory, they have not seen any significant declines for fresh buyers to enter. This could lead to a large amount of FOMO-or fear of missing out. This fear of missing out could take the market to some significant new heights before the bottom falls out. There has been... Continue Reading

The Bottom May Be At Hand

Recent declines in the gold market have left investors wondering just how far the metal may fall before finding a bottom. Investors may not have to wonder much longer. The market could very well be at or near a long-term bottom, and price action over the next several days could be very telling. A possible bottom in the gold market could come at an interesting time. Stocks have been seeing some increasing volatility and a potential top in equities could also be in the works.... Continue Reading

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