Current Market Rates Per Ounce September 10, 2010 3:01:34 PM PST USD $  CAD $ Gold (AU): 1,246.35  1,289.47 Silver (AG): 19.87  20.56 Platinum (PT): 1,536.98  1,590.16 Palladium (PD): 515.30  533.13 USD-CAD Exchange Rate: 1.035 J&M Coin & Jewellery Ltd. 127 East Broadway Vancouver, BC, V5T 1W1, Canada Tel: (604) 876-7181 Toll Free Ordering: 1-888-244-9999 Fax: (604) 876-1518 e-Mail: jandm@jandm.com Web: www.jandm.com

Trends for Gold and the US Dollar By Chris Vermeulen January 6, 2010 Welcome back everyone! It's time to buckle up and get ready for another exciting year of trading. When the market is moving on light volume I tend to focus on very short term plays to minimize my exposure to volatility. The past couple of weeks have been great for day traders and futures trades as we took advantage of the short term seasonal holiday rally in the broad market and also by shorting gold when bounces reached resistance levels. This year I will be providing many more trades as I focus more on 60-minute trading charts to scalp the market with low risk quick reward setups. Also I will start providing futures trading analysis and signals for those who want to be more active and generate more income on a monthly basis. GLD: Gold Exchange Traded Fund: 60-Minute Chart Gold is in a strong bull market but the short term charts have provided over 13 short trades in the past two weeks for futures traders playing the bounces to resistance levels. The triangle on the 60-minute chart with declining volume is a continuation pattern of the short term trend which is down. Because gold is trading near a support level on the daily chart, I am waiting patiently for a perfect setup to go short, or long depending on what happens in the coming hours. I predict lower prices with $102 area for the next support level. Trends of Gold The broad market and commodities listed above seem to be trading at resistance levels with signs of rolling over. As a technical trader the charts do all the talking and they are pointing to lower prices in the near term which falls in line with my gut feeling that a sharp pullback across the board is lurking in January. Once the big money start getting pushed around again we will know who is in control, buyers or sellers. US Dollar Daily Trend The current trend of the dollar is now up when looking at the daily chart (higher highs and lows). The strong price thrust in December has formed a nice flag pattern. This is a continuation pattern meaning the dollar should continue higher once this pause is complete. Gold Futures Trading Trend: 60-Minute Candle Chart As you can see from the chart below gold has made a short term bottom and is trading at a major resistance level. The question is, does gold reverse and head sharply lower or does it break through the resistance level? Could this be the start of a new leg higher or a C wave lower (ABC retrace)? I hope it is an ABC retrace which is a bullish price pattern and it flushes out the weak positions before heading higher. These are questions no one knows for sure but understanding where the current price is trading and that volatility could pick up very quickly in the next couple days is crucial. When volatility is about to increase managing your open positions or adjusting any possible new trades is an important part of being a successful trader. Rule #1 Keep overall risk per trade low If volatility is about to increase I usually trade smaller positions unless I am in the zone and feeling the markets each and every move. Rule #2 Never let a winning trade turn into a loser I scale out of positions a little quicker during volatile times to lock in a small profit (20-30% of position) which minimizes my overall risk. This also alleviates some stress as you now have a small profit and you feel good mentally. Conclusion: In short, this is the first week of the year with light volume as traders get back in the groove and wait for the first big economic news of 2010 to hit the wires. No many of us want to stick our necks out just yet. I don't know what will happen but my thoughts are the news will be positive, even if its not. Some very well educated individuals think the unemployment numbers are false giving everyone the impression things are getting better. I don't really know what to think, but I did just see Mr. Moore's most recent file on Tuesday and I think it is very possible the USA is pulling a long con on Americans. All I can say is thank god I'm Canadian, eh! Anyways if the numbers are positive we will see money move into the USA dollar, gold and oil will reverse back down. Stocks I think are de-coupling from the inverse relationship with the dollar and if that is the case stocks should do well. Trading before big news can be deadly so I continue wait until Friday or next week before doing much. Get my free Trend Trading charts: www.TheGoldAndOilGuy.com. TheGoldAndOilGuy.com is owned and run by me (Chris Vermeulen), an individual gold trading specialist. After sharing my gold analysis with friends, traders and financial advisors, I decided to make TheGoldAndOilGuy.com my full time job in 2003. This service was designed from the ground up to help individual traders who want to focus on consistent, accurate and profitable trades. Over the past ten years my strategy has been refined to one golden trading vehicle which has an almost 100% accuracy. The GLD (DGP and DZZ) gold exchange traded funds are now the most accurate trading vehicle I have seen, so it's my vehicle of choice. Members of TheGoldAndOilGuy.com not only get to trade my signals, but see my live trading charts and ask me all the questions they wish. My goal is for all of us to make money and have fun in life. Home | Products and Prices | Buying | Selling | FAQ | Articles | Forms | Top Website © Copyright J&M Coin & Jewellery Ltd. 2010. All rights reserved. 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