Mid-Week Commodity ETF Update!

<h1>Mid-Week Commodity ETF Update!</h1>Author: <a title="Bob Obrien" href="http://www.articlesbase.com/authors/bob-obrien/165081.htm">Bob Obrien</a> Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. While I continue to stay long, taking some money off the table to lock in profits is a safe play.    If you look  at the charts we can tell the odds are pointing to some type of pause or pullback in the coming days. I figure any day now we could see some profit taking.   Gold ETF Trading - GLD The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.   Silver ETF Trading – SLV The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.   Natural Gas ETF Trading - UNG The Natural Gas ETF sure has given everyone a wild ride in the past 6 months. The bear market is still in place which can be seen on the daily chart. So far this week the price has broken down and trading at the $11 support level. This fund could generate a buy or sell signal with my trading model in the coming days so I am waiting for a clear entry and exit point before jumping on the gas wagon.   Crude Oil ETF Trading - USO The Crude Oil ETF has broken above its resistance trend line this week but still struggling to move above the August high. Volume is declining while the price rises which is a bearish indicator. USO looks ready for some type of a pullback as it digests this breakout before moving higher.   Mid-Week GLD, SLV, UNG, USO ETF Trading Report What does the general public hear and think about the stock market? From recent emails, local financial news shows, family, friends etc… all I am hearing is how strong the market is. Indexes are making new yearly highs and company earnings are better than expected this quarter. Sounds like all we need to do is buy and life will be great!   Well in my opinion the market is the perfect tool for misguiding and frustrating the general public. All my indicators are telling me we need more of a correction before rallying much higher. The market (smart money) generally anticipates good and bad news several weeks if not a month in advance. So the question is:   Are company earnings already priced into the market?   Is all this positive market coverage getting the general public to buy up here at this possible market top?   The answer is, only time will tell. No one knows for sure what the market is going to do but short term moves can be predicted with relatively high accuracy.   Don’t get me wrong, I am still bullish on the market but with all this good news becoming public information you have to wonder what is next. I am still long the market but trimming my positions to lock in profits and still stay in the game.  About the Author: Chris Vermeulen
Contributing Writer
Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/investing-articles/midweek-commodity-etf-update-1343760.html" title="Mid-Week Commodity ETF Update!">Mid-Week Commodity ETF Update!</a>

Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. While I continue to stay long, taking some money off the table to lock in profits is a safe play.

If you look at the charts we can tell the odds are pointing to some type of pause or pullback in the coming days. I figure any day now we could see some profit taking.

Gold ETF Trading - GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

Silver ETF Trading – SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

Natural Gas ETF Trading - UNG

The Natural Gas ETF sure has given everyone a wild ride in the past 6 months. The bear market is still in place which can be seen on the daily chart. So far this week the price has broken down and trading at the $11 support level. This fund could generate a buy or sell signal with my trading model in the coming days so I am waiting for a clear entry and exit point before jumping on the gas wagon.

Crude Oil ETF Trading - USO

The Crude Oil ETF has broken above its resistance trend line this week but still struggling to move above the August high. Volume is declining while the price rises which is a bearish indicator. USO looks ready for some type of a pullback as it digests this breakout before moving higher.

Mid-Week GLD, SLV, UNG, USO ETF Trading Report

What does the general public hear and think about the stock market?

From recent emails, local financial news shows, family, friends etc… all I am hearing is how strong the market is. Indexes are making new yearly highs and company earnings are better than expected this quarter. Sounds like all we need to do is buy and life will be great!

Well in my opinion the market is the perfect tool for misguiding and frustrating the general public. All my indicators are telling me we need more of a correction before rallying much higher. The market (smart money) generally anticipates good and bad news several weeks if not a month in advance. So the question is:

Are company earnings already priced into the market?

Is all this positive market coverage getting the general public to buy up here at this possible market top?

The answer is, only time will tell. No one knows for sure what the market is going to do but short term moves can be predicted with relatively high accuracy.

Don’t get me wrong, I am still bullish on the market but with all this good news becoming public information you have to wonder what is next. I am still long the market but trimming my positions to lock in profits and still stay in the game.

Chris Vermeulen Contributing Writer

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/investing-articles/midweek-commodity-etf-update-1343760.html

Article Tags: etf, gold, silver, natural gas, oil, stocks

Related Videos
Related Articles
Ask / Related Q&A

Play

Returns at These ETFs Could Shock You - Part 2 (Morningstar)

Play

Returns at These ETFs Could Shock You - Part 1 (Morningstar)

Play

What Are ETFs

Play

Wild & Wacky ETFs

Play

What is an ETF

Latest Investing Articles
More from Bob Obrien

Bar-by-bar Forex trade dissection (video 2)

By: Rob Trader | 01/12/2009
Forex Income Engine, Forex Income Engine 2.0 Review, Forex Income Engine 2.0 Reviews, Forex Income Engine course, Forex Income Engine ebook, Forex Income Engine Reviews, forex indicators, forex market, forex profit, forex robot, forex software, forex trading, futures trading, fx, market currencies, options trading, stock trading, swing trader, system technique, trading method, winter 2010 update

ISA myths dispelled

By: Sam Gooch | 01/12/2009
Despite some thoughts to the contrary, one writer points out that saving in an ISA is a simple process.

Roth IRA and its Benefits

By: David Ryska | 01/12/2009
We thought we would all be in lower tax brackets when we retired; therefore tax deferral was the plan. However, tax rates are likely to be as high when we retire as when we are working; therefore the benefits of a Roth IRA become more attractive.

Canada’s Leading Investment Real Estate Research Firm Offers Investors Big Returns with First Ever Sale

By: Don Patrick | 01/12/2009
Real Estate Investment Network (REIN™) has grown over the years to become Canada’s leading real estate research and education organization. The REIN™ presents the biggest blowout sale of the year ever.

Wholesaling Houses: The Secrets to Success

By: Daniel Mc Grey | 01/12/2009
According to many real estate investors, wholesaling houses is one of the best ways to make money in the housing industry. You don’t need huge investment capital to get started in this business. In addition, because you’re not exactly buying a property, you’re not exposed to huge risks that can badly affect your career as an investor.

What You Must Not Believe About Rehabbing

By: Daniel Mc Grey | 01/12/2009
Many successful house rehabbers fear as an acronym: False Evidence Appearing Real. This is usually caused by lack of proper knowledge.

What to Avoid When Rehabbing a House

By: Daniel Mc Grey | 01/12/2009
Everybody has been telling you what you should do to be successful when rehabbing a house. But what about the things you should not lay your hands on? Here is a short guide on the items that you should not do if you want to come out alive of real estate investing.

Using ‘Senses’ to Fix and Flip Houses

By: Daniel Mc Grey | 01/12/2009
To fix and flip houses, they say you need to have the finances. But apart from the obvious, there are “senses” you must possess to be able to fix and flip properties with ease. Below are some of them.

http://www.mywealth.com/blog/post/us-dollar-limbo-how-low-can-it-go

By: Bob Obrien | 25/11/2009 | Finance
As I gear up for the holiday invasion and the ensuing gluttony that’s about to transpire, I can’t help but look forward to my next vacation. I’m thinking somewhere tropical, perhaps the Caribbean, enjoying drinks with little umbrellas in them. I lull myself into daydream, counting waves and sunsets as island music fills the air. Yet all is not perfect. And then it hits me like a ton of bricks—the calypso music I’m hearing is being played by none other than our esteemed Fed Chairman Bernanke!

Less Talk, More Action!

By: Bob Obrien | 20/11/2009 | Currency Trading
Is there an easier market to trade right now than the currency market? There are basically 2 trades going on: risk taking and risk aversion. While this will come as no surprise to anyone who’s in this market, investors in both the stock and commodities markets should also pay attention.

Precious Metals & Energy ETF Trading Report

By: Bob Obrien | 19/11/2009 | Investing
The gold and silver ETFs are on fire as they continue to surge higher. Being ready for a sharp reversal is important if you want to lock in gains on a portion of your position.

Tap in to China!

By: Bob Obrien | 17/11/2009 | Investing
In 1995, the NASDAQ was trading around 1000. On 3/10/2000, it hit a peak of 5048. Such euphoria had not been seen since the railroad boom of the 1840s or the automobile boom of the 1920s. Now it is China’s turn.

Trading Gold, Silver, Oil and Gas Using ETFs

By: Bob Obrien | 12/11/2009 | Investing
So far this week has been slow in regards to commodity ETFs. Gold continues to shine while silver refuses to make a move higher. Crude oil has a nice bull flag and we are waiting for a breakout and setup while natural gas continues to see selling pressure.

Not So Sterling!

By: Bob Obrien | 11/11/2009 | Finance
The British pound (GBP) is weak across the board today as BOE Governor King re-iterated that a weaker currency should lead to a recovery in the economy. This comes on the heels of a better than expected unemployment report, though not enough to buoy the sentiment for a rapid economic recovery.

Diversify Your Portfolio Outside the US

By: Bob Obrien | 10/11/2009 | Investing
Asset allocation is the most influential factor on investment outcome. There have been growing signs that the worst of the global crisis might have passed. While the US dollar may continue to weaken and the US loses significance in the global landscape, an allocation to other developed markets is deemed necessary.