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Metal complex tumbles with Gold, Silver & Copper giving fresh sell signals


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Futures, options and forex trading is speculative in nature and involves substantial risk of loss.  These recommendations are a solicitation for entering into derivatives transactions.  All known news and events have already been factored into the price of the underlying derivatives discussed.  From time to time persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives.

Gold, Silver and High Grade Copper futures all declined today (11/02) as the U.S. Dollar Index rallied.

This move higher for December gold futures indicates a fresh sell signal on the daily chart.  This is the third sell signal gold has issued since the trend changed to the downside in mid-October.  Today’s sharp decline has gold sitting just above support on the daily chart.  On the weekly chart gold issued a King’s Cross counter-trend sell signal three weeks ago and the trend looks as if its about to turn to the downside, the first time since mid-2009.

Silver (December) also gave a fresh sell signal on the daily chart today, also its third sell signal since the trend changed to the downside.  Silver generated a King’s Cross counter-trend sell signal three weeks ago on the weekly chart and is showing a sell signal so far this month on the monthly chart.

Finally, the December contract of high grade copper suggested a sell signal today, following two previous trading sessions of gains.  Copper issued a King’s Cross counter-trend sell signal three weeks ago on the weekly chart and the trend is down on the monthly chart.

It appears many commodities are declining in prices due to a global economic slowdown.  A strong U.S. dollar, which tends to suppress commodity prices, may be adding pressure to the metal complex.  On the weekly chart gold seems to be range-bound and on the monthly chart gold has basically been trading sideways since August of 2011.  In my opinion do not underestimate how far gold prices may decline.  If the metals and gold specifically hit the lower end of their trading range (1550-1530 area for gold) and are able to fall below these support levels gold prices, according to my research, have the potential to deteriorate as far as the 1250 level and lower.

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Sign up for your FREE subscription to my daily newsletter:   http://www.zaner.com/offers/?page=1&ap=lbaer&rid=insidefutures.

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Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed.



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Welcome to my page! My name is Larry Baer and I am a senior broker with Zaner Group. I have been in the futures industry for thirty years and my prior experience includes a membership at the Chicago Board of Trade. During my ten years on the trading floor, I traded and managed a futures and options operation which serviced both retail and institutional clients. I am also the author of the Trader's Tool Box.

While I have a strong respect for market fundamentals, I truly believe in the old adage, "the trend is your friend." And I have made the trend my best friend. I utilize a matrix of common technical indicators that when viewed together, generates a much stronger trading signal combined, than when viewed alone. The blend of this matrix with my own insights offers a complete technical picture of the markets. This is not a trading system, but a trading strategy which can assist or complement your own trading plan and style.

If my three decades in the markets has taught me one thing, it's that the needs of traders vary as much as traders themselves. You may think you need full service when you don't, and often, vice-versa. Your trading style may be suited for tailored trading platform you are not aware of. My role is first, to help define your needs and to build a relationship from that point. Choosing the right broker is key to your trading goals. Here is what I offer my clients:

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