Current Market Rates Per Ounce September 08, 2010 4:19:24 PM PST USD $  CAD $ Gold (AU): 1,256.00  1,302.47 Silver (AG): 19.93  20.67 Platinum (PT): 1,552.50  1,609.94 Palladium (PD): 522.00  541.31 USD-CAD Exchange Rate: 1.037 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

How to Trade Gold and Silver ETFs By Chris Vermeulen January 18, 2010 Whether you are trading stocks, ETFs, or futures -- technical analysis is the preferred choice for short-term traders. Technical analysis in short is the study of price and volume movements on charts. It can be used for studying charts in any time frame whether you are a one-minute chartist or a long term investor using monthly charts. Using technical analysis in my opinion really opens the door for a trader to lower his/her overall risk when investing money. I always like to know if the investments I am watching are trading near a critical price level (support or resistance). During these times you can take positions that have very clear entry and exit points for trading. Also it puts the odds in your favor when a position is entered in the same direction of the underlying trend. Price action is how we make money in the market, so I strictly follow price and volume when trading as they are the least lagging indicator on what the market it doing. I have put together a few charts using commodity ETFs to show you what I am seeing in the market and what we should expect to see in the coming days. GLD ETF Trader - Daily Trend Chart The gold trading chart below shows two different types of trends. The initial timeframe of the chart illustrates what I call a Normal Trend. This is a series of higher highs and lows. This type of trend allows an investment to continue profitably for a very long period of time. For example a daily chart like the one below can continue to trend like this for six to eight months. The reason for this is because price appreciation is increasing at a rate which investors are comfortable with. Also, the pullbacks cleanse the investment vehicle of weak traders every few weeks allowing fresh money to enter at higher price. Now if you look at the later timeframe of this rally we observe a rally phase I call an Extended Rally. An extended rally is when price appreciates without any pullbacks. You can make a fortune with this trend very quickly, but you must realize that reversals are fast and sharp. And that, we observe, is how GLD performed in December. While some call December's price drop a pullback, I call it a technical breakdown. The sharp price reversal and heavy volume associated with this type of move generally provides excellent short term momentum trades. A lot of damage is done to the investment on a heavy volume breakdown taking weeks for a recovering to occur. Normal trend rally, extended rally, predictably fast and sharp technical breakdown followed by weeks of recovery. Gold Hourly Chart Silver & Gold ETF Trading - Daily Charts Below is the chart of the silver ETF SLV and I overlaid the GLD gold fund in green so you can see how they move in sync. The blue boxes on the chart show the pattern that I think is forming and what to expect in the coming days. From looking at gold in both other currencies and with respect to gold stocks which have been underperforming, I feel we are going to see lower prices still. At the moment I am neutral on silver and gold for the short term time frame (daily and 60-minute charts). Conclusion Commodity Trading Conclusion In short, gold and silver have been underperforming the market recently which is not what we want to see. They have led the market higher all year but are now taking a breather. The way I see gold and silver is that they are trading below their recent highs and still have more room to fall before landing on a solid support level. The stock market is now over extended and looks ready for a sharp correction. If this happens we will see commodities drop and test lower prices also. There is not much we can do right now other than protect our current long positions by tightening our stops. Depending on the strength of the breakdown, there could be a great opportunity for short-term traders (60 minute chart traders) to make some quick money. I expect a sell off which will last three to five days at the least. If you would like to receive my free technical trading newsletter, please visit my website: 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. Pricing index programming and site hosting by Sandrix Technologies Ltd. (AXD)