CHART SIGNALS & ANALYSIS
(2 months of time, 30 minute bars)
Gold Pros vs Leveraged
Joes
Dev Cheekock (Sprout)
email: dev@goldsproutprofits.com
written Sun Sep 25, 2011
posted Sep 26, 2011
GOLD FUTURES
Click
here to view my analysis of the weekly gold chart.
Price Range. My projected range for your
next 5 trading days is $1600 to $1800. My gold futures long position
is 76.35% of the total portfolio.
Volume. The big volume areas are $1600 and $2000. The
gold price is near $1600 now and this is a price area of substantial
opportunity even though the fear levels are very high, and justifiably
so.
Click
here to to view my analysis of the gold daily chart.
In-House Oscillator (Sprouticator). I use a blue Sprouticator
to indicate professional buying power and a red Sprouticator
to indicate professional selling power. The current reading of
3 blue for gold futures indicates light buying by professionals
is now the action in play.
Click
here to view the one minute gold chart, which I believe is critical to catching the
action of professionals that only short term volume patterns
can reveal.
Gold Futures Morning Summary: The price is relatively
low. I would like you to work in the $1600 to $1800 range.
The Bottom Line: Buy SOME gold futures around $1600- $1700.
Sell some gold futures around $1800- $1900, and hold a substantial
core position, anticipating much higher prices. Use little or
no leverage. Futures markets offer you the best in liquidity,
and the best trading hours, but most investors use them solely
to trade with leverage. I think that is a mistake.
***
SILVER FUTURES
Click
here to view my analysis of the weekly silver chart.
My projected range for
your next 5 trading days is $28 to $38. My silver futures long
position is 51.72% of the total portfolio.
Volume. The big volume areas are $20
and $50.
Click here to view my analysis of the daily silver
chart.
In-House Oscillator
(Sprouticator).
The current reading of 3 blue for silver futures indicates light
buying by professionals is now the action in play.
Click
here to view my analysis of the one minute silver chart.
Silver Futures Morning
Summary: The
price is relatively low. I would like you to work in the
$28- $38 range that I project for the next 5 trading days.
The Bottom Line: Buy silver futures around $28-
$34. Sell around $36- $38.
As I finish off for the
night [Sunday night] I'm watching silver go to a new low for
the move. As powerful as the upside is to come, I doubt it's
going to happen tomorrow or this week for that matter. We could
face some more downside in terms of the price of gold and silver.
If not, the price can
stay still for a period of time with very little movement, and
that is more the norm than the exception. Usually there is then
a rally, usually on the upside. Considering the damage
done on the downside it only seems natural for some movement
on the up.
As hard as it may be
to understand, the professionals are buyers here, as are the
Asian physical players. You have to hold in, and do what you
can do ensure you do. You may be down on what you own, but you're
not at a complete loss. This is where the big money is made if
you can stay strong.
The futures markets offer the ultimate in liquidity, but most
investors use them because of the supposedly free leverage. That
is a huge mistake. I always carry short positions as well as
long ones, for both gold and silver.
Click here to view the front page of my
website showing a snapshot of my model futures portfolio for
subscribers.
Paid subscribers see
the most up to date version. During times like these, the amateur
futures market "Joes" are booking huge losses in a
panic, while the biggest unleveraged pros are booking solid profits
on shorts. Booking profits builds confidence. As profits are
booked slowly but surely on shorts, some longs can be added as
well.
Today's Futures Portfolio
is posted on the website. Stay near your email inbox. Let's
place some trades.
Disclosure: I hold gold & silver futures
positions, both long and short.
###
Dev Cheekock (Sprout)
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Monday October 17, 2011
For 321Gold readers: Email me at testdrive@goldsproutprofits.com and I'll send you my micro gold
futures report and Bollinger bands report for gold and silver
futures. The standard COMEX gold futures contract is 100 ounces.
The mini contract is about 32 ounces. That is still fairly big
if you want to be able to hold a number of contracts, in most
cases. The recently-introduced micro contract is just 10 ounces,
and could be a game changer for the retail investor.
Dev Cheekock [Sprout]
website: www.goldsproutprofits.com
email: dev@goldsproutprofits.com
Click here
to subscribe to my service
MODEL PORTFOLIO
GOLD POSITION LIMITS
Minimum long gold position size: 20 contracts (100oz per contract).
Maximum long gold position size: 100 contracts
Minimum short gold position size: 10 mini gold contracts (approx.
32 oz per contract)
Maximum short gold position size: 100 mini gold contracts.
MODEL PORTFOLIO
SILVER POSITION LIMITS
Minimum silver position size: 6 contracts (5000oz per contract).
Maximum long silver position size: 30 contracts
Minimum short silver position size: 10 mini silver contracts
(approx. 1000 oz per contract)
Maximum short silver position size: 50 mini silver contracts.
For gold and silver,
I never like to go below a net long gold position that is less
than 30% of the net liquidation value of the portfolio.
Risk/Disclaimer: No personal investment advice
is given and all investors should understand that their
minimum risk on anything bought is 100% loss of capital. No investment
should be acted on without first consulting numerous licensed
and experienced professional financial advisors. Nobody should
ever invest more than they can afford to comfortably lose, in
anything.
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321gold Ltd
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