I am currently bullish the US Dollar Index with a projected target of $87.68.  The paper assets seem to be attracting investors now.  It is my opinion that funds may be trading the ranges of some of these markets due to volatility and desire to lessen the risk by exiting their positions earlier than normal.  There are strategists that feel that the Gold Market is a market that has been overpriced at the previous highs.  It is my opinion that we have not run the gamit with this market.  It is my opinion that a lower trade followed by a consolidation is imminant.  $850.00 is a possible point of control or comfort zone for this market.   $805.00 is also a point that the market can gravitate to if the $850.00 area is breeched.  By the end of 2009, I would think that this market may penetrate the previous highs of 2008 ($1015.80).     

 Gold 

The June Gold Contract may come down to $850.00 or lower.    It is my opinion that the Gold Market may consolidate at $850.00 or lower.   While my indicators remain short-term bearish, I personally feel that this market may take off again.   Traders that wish to enter on the long side of the Gold Market may wish to enter on a pullback to  $850.00.   Please be prepared to exit the market on a stop such as a weekly close below $850.00 (with conviction-we're not talking $849.50). 

Healthy re-tracements may often provide more support to the market while allowing new entries.   Given the volatility of the Gold Market, stops placed too close to entry levels will be vulnerable to election.  To manage the risk without a stop loss, a trader may use a Call Option/Bull Call Spreads to limit their exposure.    Due to the fluctuations in this market, please consult with your broker or call us to strategize a risk management plan in line with your personal risk tolerance.   Traders that wish to participate in the Gold Futures Markets may look at the E-Mini Gold contracts which have a lower margin requirement than that of the larger Gold contract.  Please look for current margins before entering this market and be sure to allow cash cushion for any adverse conditions.  Please consult with your broker to calculate the risk, stop loss orders or option strategies before entering such a volatile market.   Investors that wish to take a position in the Gold Futures market should devise a plan according to their goals, risk tolerance and the amount of money they are willing to risk in this sector.  Like many other investments, the success of the trading plan must take into consideration the timing of the entries and exits.

 

 

   Please call or email me for the complete recommendation to coincide with your risk tolerance, so that we may apply the correct Money Management.   The Weekly Gold Digger is a Free Weekly subscription to receive trading opportunities by email along with fundamental commentary and basic technical points of interest.   Take a close look and feel free to call in and talk to me in greater detail.  It would be my pleasure.  

  Take a close look and feel free to call in and talk to me in greater detail.  It would be my pleasure.  Good trading!

Call me at (877) 224-1952 or email me at lburton@danielstrading.com

 Futures' trading involves the substantial risk of loss and may not be suitable for all investors.  Trading advice is based on information taken from trade and statistical services and other sources that New World Trading believes are reliable.  We do not guarantee that such information is accurate or complete and it should not be relied upon as such.  Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.  There is no guarantee that the advice we give will result in profitable trades.  All trading decisions will be made by the account holder.  Past performance is not necessarily indicative of future results.  Any dollar amount quoted is exclusive of commissions and fees.