GOLDReport
March 6, 2008
The link to my "Mid-Day Videos" is below. Be sure to click on the RSS feed to be alerted to when a new video is posted. I do my best to record and get these posted by 1:00 P.M. CST. For metal traders this is a good way to keep up with mid-day Metal Market events as I present live charts and discuss current financial topics.
http://www.iepstein.com/videos_start.aspx
Our new studio is now complete. Our guest hosts and those we interview are recording on a beta website now. We expect a full rollout of product no later than months end. Timely videos will be broadcast on:
- Daily Opening Calls
- Intraday Market Commentaries
- Day End Wrap Up
- Interviews with market technicians, floor traders and industry experts
This week's letter will be much abbreviated as I am simply buried in a number of things today. I did not want to not get a report out, so I decided to go with one simply devoted to Gold and to make it very simple.
$1000 an ounce Gold...
Gold is currently acting pretty much as I expected. Here's what I mean.
All you need do is look at a chart of Crude Oil to understand what is taking place in Gold. For reasons unknown to me, "Century Numbers" as I call them, are numbers "large" numbers, markets have never seen. Be it $3000 a foot real estate prices or $100 a barrel in Crude Oil, these numbers when hit often stall markets out.
As you may recall, CNBC had reporters and cameras at the ready to make a live event of reporting when Crude Oil hit $100 a barrel. Once the event occurred, Crude Oil retraced. In fact, prices ended up retracing very hard as seen on the chart below.
June Gold
Let's look at a chart of June Gold
Just yesterday, June Gold Futures hit the magic number of $1000 an ounce. Just as in Crude Oil, gold prices managed to just squeak over what I term a "Century Number". The result today has been an approximate 3% price drop.
Last night I was interviewed on the TV Show "First Business", where I pointed this phenomenon out and said to viewers to expect a downside correction.
How much of a correction is what will end up being important. The last Swingline Low, which I've labeled on the chart comes in at 963.9. However, even if that number is broken, since prices are trading over the 18-Day Moving Average of Closes, the overall trend will remain technically speaking, Bullish.
In fact, the ideal spot to buy is as usual a bit difficult to pin point. A lot depends on your trading style. For Futures Traders, buy gold near 967 and risk to 963.8.
For option traders, I like the idea buying the 975-1000 June Gold Call Spread if and when Gold hits the 18-Day Moving Average of Closes. This average is climbing at the rate of about $3 a day, so s gold nears the $955-960 area it might be worth nibbling into.
I would do either strategy as long as when you purchase the Stochastic Study stays embedded. By embedded I mean that both the K line and the D line are both over 80. The K line is in red and the D line is in yellow.
Futures markets are always a bit more difficult to trade, as you have to be more correct with Futures than Options. Regardless of the strategy you choose, the key thing to remember is that you still have to be right the trend.
Video Link: http://www.iepstein.com/videoAds/fa_vid2/fa_vid2.html
Getting started is easy. Simply click here to learn more or to subscribe....
If you haven't had a FREE 4-Week Trial to my Twice Daily Recommendation, simply go to www.iepstein.com and fill out the request form.
If you haven't had one in the past, you can subscribe for FREE for the next 30-days and receive access to all of my research including my Nightly Audio/Video Recordings where I cover in detail all the metal markets. Go to www.iepstein.com for more information.
Free Offering: New Futures Trading Kit
Our FREE New Investors Kit is contained on a CD. It includes:
30-Day Trial to our Charting Software with:
- Live Streaming Quotes from the CBOT and the CME
- Paper Trading
- Price Ladders
- Streaming News
14-Day Access to our Nightly Audio/ Video Report
14-Day Access to our Twice Daily e-mailed Market Research
Brochures, Booklets and much more...all on the New Investor Kit CD
For those that trade or want to trade the Metal Markets, call us to find out just how low our commissions are. They are very low. For those trading elsewhere, we'll probably be able to beat what you are paying by a lot. I think you'll be more than surprised!
For more assistance, call one of our brokers at:
Our phone number is 1 800-284-3010. Please remember that this report goes hand in hand with our Twice Daily Market Commentaries that is available through Ira's Subscription Page.
Please call for more information.
Archives of these Metals Reports can be viewed Here.
Disclaimer: This publication is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is taken from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures trading involve risk. In no event should the content of this market letter be construed as an express or implied promise, guarantee or implication by or from Ira Epstein & Company or Shatkin Arbor, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are no indication of future performance.