The Easiest Way to Spot Options Opportunities

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Technical Analysis: Silver Could Be about to Run

2016 began well for silver.

And then, well… it got worse.

In the first few months of last year, silver ran from near $14 to $21.  But by June, the party was over.  Silver would plummet from its sky-high valuation to $15.96.

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Technical Analysis: The Importance of Money Flow

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock.  None of us want to buy a stock if money is flowing out, right?  Of course not… It’s a great way to lose money.  Instead, we want to buy if we’re seeing money flow in.

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Technical Analysis: Copper Close to Breakout

If copper can hold current support around $2.50, the metal has a chance at pivoting higher and retesting prior highs, as we noted December 22, 2016.

And that’s exactly what happened.

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Technical Analysis: Gold Could Retest $1,268

Well, that was easy.

In early January 2017, we argued that gold could have just bottomed out after finding strong support at $1,125.  Now, just weeks later, the yellow metal is up to $1,215 with its sights set at $1,268 an ounce.  All it needs to do is break above prior resistance at 1,233.10 and it could run.

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Shocker: U.S. Dollar Second Worst Currency of 2017

Apparently, the buck stops with Trump.

After a 13% run from May 2016 lows, the U.S. dollar is beginning to slip, having just broken below its 50-day moving average to the downside.  At this pace, it could challenge a December 2016 low of $99.25 before long, infuriating those who are long the currency.

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Technical Analysis 101: Which Chart is Best for You?

Since the 1700s, analysts have been using charts to identify patterns.

In fact, at one time, Tokyo rice traders used them to look at prices over a fixed time frame to find patterns, especially candlestick patterns – which would allow them to gauge the probable actions of rice buyers and sellers.

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One of the World’s Most Unstable Currencies

Global investors are fleeing the Mexican peso en masse again.

The worst performing currency of 2017 (down 20% against US dollar) is now down another 5% in the first 11 days of the New Year.  And there are no signs of relief, in part because Donald Trump just told automakers that higher taxes would be levied on vehicles made in Mexico.

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Five Technical Analysis Myths Debunked

Technical analysis has always been rejected as a study of lines and charts without any real concrete or profitable results. And clearly, an exhaustive debate on its usefulness would be long-winded, especially against those that only subscribe to fundamental analysis, as Warren Buffett does.

But as any technician will tell you, it does work well with understanding.

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Technical Analysis: Gold May Have Just Bottomed

2016 began well for gold prices.

Between January and June, gold bugs were quite pleased, as the metal soared from $1,070 to $1,364.  Then came the second half of the year, and it all went south.

In fact, since June, gold hasn’t been the greatest trade to hold at all.

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Two Stock Patterns Every Trader Should Know

When it comes to trading, none of us have a crystal ball.

We can’t tell you with obscene accuracy what’s coming next. 

But what we can help you do is attempt to gauge the possible intentions of buyers and sellers.  One of the best ways to do just that is with charting… where you’re looking at a consolidated view of the forces of supply and demand.

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Technical Analysis: Bitcoin Rally Still Has Legs

It’s one of the best-performing assets of 2016.

Since the start of the year, Bitcoin is up nearly 90%, having just recently hit a two-year high of $918.95.  Near-term projections put the currency in range of $1,000 to $1,200.  New Year 2017 projections put it as high as $1,216, as demand explodes for alternative investments.

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Technical Analysis: Copper Popped as Expected, But…

In late November 2016, we noted copper was overdue for a higher move, thanks in part to a pick up in global manufacturing and infrastructure spending in the U.S.

We were hopeful for a rebound from $2.43 support, retesting a prior high of $2.733.

And that’s exactly what happened. 

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A Technical Picture of Human Emotion

Traders are often told to ignore the art of technical analysis.

“Technical analysis is fundamentally flawed,” says Forbes.

“The poor reputation of technical analysis is well deserved, noted another analyst.

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Technical Education: The Rubber Band Theory

Pull out a rubber band.  Now pull it with all your might in one direction. 

What happens at the point where you can’t stretch it any more?  It snaps back, right?

That very same thing happens to most stocks, indexes and ETFs, too.

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Coffee Prices Oversold, Ready to Bounce

Americans still love their coffee.

But prices have soured as traders predict a surplus, instead of a deficit. 

That, coupled with a stronger US dollar has sent coffee prices from a November 2016 high of $1.76 to $1.42.  Despite rising consumption, favorable Brazilian weather conditions are pointing to a stronger than expected harvest for the New Year.

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Charting 101: The Omen You Cannot Ignore

The U.S. markets are in a super bubble.

But if the latest technical setup is right, the bubble could soon burst.

Known as the Hindenburg Omen, it typically warns of the possibility of stock market crashes.  The last time it appeared, investors foolishly ignored it in December 2015.

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