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GDX : HEDGE FOR MARKET UNCERTAINTIESGDX is a fund that invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the gold mining industry. Miners have lagged actual Gold prices (XAUUSD) potentially due to operational risks affected by COVID19. The chart now looks set-up for a move higher to catch up with gold spot price as it breaks out from consolidation. In times of an extended market and uncertainties, it's never a bad idea to hedge positions with exposure in gold to be well-prepared when the market turns.
AMEX:GDXLong
by TradingMavericks
Gold Testing Short-Term Support, Hedge Against FOMOWhile the rest of the market ran bullish at the end of the previous week, Gold dipped negative, crossing below the 30-day and 50-day moving averages. Prices are currently trading horizontally in the short term with $16 being a support level that has not been broken, despite several tests since mid April. Low MACD amplitude swings also correlate to a near-term horizontal move as opposed to any breakthroughs, contrary to many other bullish equities. Further, the volume at the latter half of last week did not see a significantly large increase, also contrary to the FOMO activities of the rest of the market. These realities may correlate to investors of Gold being more interested in a longer term safe haven as opposed to short term swing trading. Go long at the current support level either as a hedge against a potential market correction or purchase medium term call options as a bet on a steady average rise in Gold prices.
AMEX:IAULong
by ConfederateTrader
2
Do I need to explain such simple chart ?Hey let´s see what we got there. Keep in mint that Good traders track and work with the market emotions too ! (Greed & Fear cycles helps to determinate reversals "fundamentaly" (XRP dead) and when technicals meets the criteria aswell ^^ ... I would like to know below the chart in the comments if I need to explain this chart any further. If you have any questions do not hesitate to ask me. Otherwise ChaChain TIP: Massive Divergences / Reversal Hedgeing ------------- Disclaimer: I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
Long
by Anoinvest
3
SILVER OUTPERFORMS in last 2 monthsThanks for viewing. This is a wee update on an older post. What has changed recently? - I amended my label for the upper range from "sell gold and buy silver" to "hold gold and buy silver" for a couple of reasons; 1. I hold gold mainly as a hedge against local currency and USD devaluation generally and also increasingly in light of increasingly obviously un-serviceable levels of sovereign debt / quantitative easing that started September 2019. Also 2. Because now that I have some gold, I will be unlikely to part with it just because its price is up in fiat currency terms. You don't cancel your insurance policy when times are good, neither will I sell my gold for a fiat profit. 3. These things are really hard to time and the most important factor; general loss of faith in paper assets will likely result in a significant re-pricing of gold (and silver) to much higher levels (I likely won't sell either if gold goes up 200- 400% but will reduce or stop regular purchases). While I am a big believer in silver, as borne out over the past 2 months (although there was a spike in premiums while the silver futures price dipped - which made 'buying the dip' difficult) I do not want to be a long-term holder of silver - given how volatile it is and the greater storage costs. So, silver I will sell when the G/S ratio hits some key levels. - The economies throughout the world are in significant turmoil, a lot of mines are shuttered still (the North and South American silver miners seem in for a long-haul). Seeing as silver is primarily an industrial metal, I have been impressed with is relative performance of late. It seems that silver demand has been brought forward and is, at least, counter-acting what may be lower industrial demand. As gold hangs out between USD1650-1750 it is quite possible that a significant portion of investment demand has turned away from gold and towards silver as people may "see" more upside for silver as well as possibly more value for money. Protect those funds everyone
GShort
by flyinkiwi10
1
Gold To Testing New Heights And HighsOuter Perspective (Monthly Chart) Half way through the month of May and Gold is climbing seeing highs not seen since November 2012. Hopefully momentum and world dynamics in its favour to test levels depicted on the left hand side of the chart and breaks the wicks of 1795 and above. Area of Interest Looking to the highs. Gold is placed well into the close to open on Monday with a nice weekly candle. Buyers will see this fresh air on the charts and price levels having confidence. A test of the inner lows trend Line could be retested, so watch for bears playing here. Buyers will need to hold these levels steady. If highs are broken it tells you a lot about the economic sentiment worldwide at present.... Have a glorious weekend all. 📈Support & Resistance📉* Support Levels 1st Support Zone: 1721.336 2nd Support Zone: 1702.869 3rd Support Zone: 1673.126 Resistance Levels: 1st Resistance Zone: 1753.979 2nd Resistance Zone: 1783.75 3rd Resistance Zone: 1814.26 Price Level Consideration All Time High Half Way Point: 960.480 Prominent High: NOW Prominent Low: 1043.409 🐃 Bulls Verse Bears 🐻 🐃 Bullish above: BULLISH NOW 🐻 Bearish below: 1451.718 Comparative against Silver & Platinum
OANDA:XAUUSD
by LandenInternational
GOLD looking bullish !GOLD ($GLD) Currently in a bullish trend and displaying consolidating volatility which means a big move in either direction. Expectations of continuing in a bullish trend in a setup resembling something we currently have is usually more probable. I will be looking to enter the trade at $161.10. Intermediate target at $165.29 and full target at $166.83. Potential to overperform as there is a “key level of significance” at $174 as your next major resistance. Stop Loss set at $158.10. On Balance Volume also looks strong for the bullish scenario on this chart as well as for $XAU/USD while doing a 360-degree analysis.
AMEX:GLDLong
by KennySniper
Trading key-levels and how to HEDGE properly (+486 pips)Is it true that the Forex Market is manipulated and controlled by a handful of banks and market makers? If so, how can we identify when they manipulate the forex markets and is it something that requires access to sophisticated tools and secret contacts? Well, let’s begin by getting a few facts straight. Firstly it is true that the forex markets are manipulated and while you don’t need any sophisticated tools or secret contacts to understand how this happens, identifying when it happens is not easy for the majority of retails traders. What most traders fail to appreciate is what the financial markets truly are and how to trade forex properly. The Forex markets is a place where buyers and sellers come together facilitated by brokers and market makers who look to profit by making a commission for each transaction. Just like any other market, buyers and sellers can only come together if there is a middleman facilitating the transaction. This middleman in the case of Forex is the market maker, and their job is simply to match buy and sell orders for the best price possible and earn the most commission that they can on each transaction. How forex works – Buyer & Seller Counterparties Every trade that is executed in the forex markets has to have a buyer and seller and when this takes place then we have a trade. This normally happens in a fraction of a second electronically but in essence, each time you enter a buy trade you are being matched with someone who is happy to enter a sell position and take the opposite side of your trade. If this doesn’t happen then there wouldn’t be a trade. Why is this so important? Because it highlights the problems that large banks have which small traders don’t. Any retail trader is able to place whatever position size they wish into the market without ever fearing slippage or bad fill. Granted slippage may take place during high impact news items such as central bank announcements but on the whole, most of the executed trades are done instantaneously. Now if you’re a retail trader trading 1 standard Lot then you won’t have any problems with being filled at the price you want. Imagine you’re trading 100 Lots or 500 Lots or 1000 lots, these are larger positions to put into the market at any one time and it’s much more difficult to find someone to take the other side of the trade at the exact price and the exact time that you want and therefore might not be filled at a great price. Well, what could you do in such a situation? You have one of three options: Option 1: You could either bite the bullet and get executed at whatever price you are able to get, the only problem here is that you won’t be getting the best price possible for your trade which eats into your profits. Option 2: You could wait for the price to get to the price level you want so that you get the best execution possible and buy or sell at a much more favorable price – this is great but what if the price doesn’t get to the level you want for you to execute your trade? You will either be forced to walk away without making a trade or be forced to take whatever price you can get if doing the trade is absolutely essential Option 3: You force the price to get to the level at which you want to transact by cleverly manipulating other smaller traders to push the market in the direction you want it to go. Once you get the price to the level you want then you can carry out your transaction. How can you do this? By taking massive positions and exercising your muscle. This is similar to when large companies and conglomerates bully smaller businesses out of the market through aggressive competition. Best Options… Which option do market makers and those with large orders take? Option 3. This is how manipulation works in simplicity. The big players who have the money to move the market in the direction they want, do so on a regular basis. What’s more, they have no option but to do this because unless they can manipulate the market then they won’t be able to execute their large orders. Think about it – what causes the price to move up? An imbalance of buy and sell orders such that there are more buy orders than sell orders which means there is more demand for that particular currency pair than there is supply. Conversely, what causes the price to fall – a larger build up of sell orders than buy orders such that supply outstrips demand thereby resulting in price falling. Now if a market maker comes into the market with a massive order to buy a currency, what will happen to the price? It will start to rise. This means that the market maker is bidding the price higher and so forcing himself to keep buying at higher and higher prices until their order is filled. This hardly sounds attractive or even smart for that matter as the market maker is in the business of maximizing their profits. So what is the alternative? The only alternative is to buy or sell in a hidden way without alerting all the other traders as to what is really happening. How does this take place? By buying into selling pressure or selling into buying pressure. In other words, what a market maker will do is do the opposite of what they intend to do in order to push the price to their desired level. What is a market maker? It is a financial intermediary set up with the sole purpose of matching buyers and sellers together to make a commission in the process. So let’s say a large European conglomerate wants to buy out a US company for $10 Billion. It can’t just go to a money exchange bureau or the bank to change that amount of money. Most likely it will go to a currency broker or a large bank who will complete the transaction by going into the money markets via their brokerage arm. Once the market maker receives the order for the transaction, their job is to convert the conglomerate’s money from Euro’s into USD. They will, therefore, be trading the EUR/USD pair and selling Euro’s and buying USD. Since this transaction of selling Euros and buying USD happens instantaneously, what the market maker needs to do is get the highest exchange rate they can for Euros to USD. The way they do this is very important as it affects the amount of commission they stand to make. In this example, it’s in the market maker’s interest to achieve the highest interest rate they can so they do this by driving the exchange rate higher first and then starting to sell the euros against this higher price. They continue to sell just as everyone else is fooled into thinking that price is going to continue higher until eventually they sell all the euros and convert into USD and complete the transaction. What happens now is that since the selling pressure has become stronger than the buying pressure, price starts to fall rapidly and everyone is left scrambling to get out of the trade once they find out that they are wrong. The reason people are left scrambling is that as a result of giving a false signal of the market starting to move up, the market maker manages to entice other traders to start buying heavily. Once the other traders find out that they were wrong in their assessment of market direction, then the main focus becomes to get out of their positions quickly. This is what we call the trap and it happens on a weekly basis in the Forex market.
by TayFx
2
BITCOIN & SP500 | THE SIMILARITY IS PRECEDENTED | NOT A HEDGE.No unnecessary words needed. The chart speaks volumes. Bitcoin has never experienced a recession let alone a pandemic. Bitcoin will follow and mimic the global economy so long as economic implications exist. Main indicator for investing in Bitcoin should be the SP500, or any other equity index. This isn't a bull market. This is a bull trap correction. VERDICT: Bitcoin is not a hedge and will follow the broader markets until this recession/pandemic is over. Just ask yourself... why would bitcoin act differently?
COINBASE:BTCUSDShort
by JayanVarsani
5
DAL Projection *UPDATE*NYSE:DAL With rising fuel prices, its not helping the airline industry (jet fuel is one of their major expenses) combined with shuydowns. I am still bullish as this investment is getting cheaper for me to get back in at a lower price (averaging down). Still waiting for the 29th when I anticipated a bottom of $20.49 for further adjustments. An addition to this holding, an energy investment that benefits from rising energy prices may be a hedge (i.e. MR NYSE:MR ).
NYSE:DALLong
by investinfamily
100% SPX - 60/40 - 80/20 - Portfolio Performance - GOLDBelow are three charts, the first depicts what i call the "Robinhood Investor" or the "Millennial Investor" which consists entirely of long equities, in this case the SPX. The second chart depicts a classic "60/40" allocation to stocks and bonds (in this case TLT, which i will come to in a moment). The final chart visualizes a portfolio of 80% equities and 20% physical gold. 100% SPX 60/40 SPX/TLT 80/20 SPX/GOLD The first thing you will notice is "well, look at that the classic 60/40 portfolio, glad i listened to my financial adviser, yes it isn't as good as the 80/20 portfolio, but heck, 157% is pretty dang good!" Well...yes and no... As i said, the bond component of the 60/40 portfolio was TLT for simplicity. BUT, not all bonds are created equal, and unless 40% of your portfolio consisted entirely of long-dated US treasuries, you did not get that return. In fact, you may in fact be underwater in some of your bond holdings, depending on what variety they are. Broad Bond performance Above we have a variety of bond options, TLT (Long-dated US Treasuries) , HYG (high yield "junk" bonds), LQD (Investment grade bonds) and BND (global bond index fund). It is true that TLT has done incredibly well of late up over 103%, but HYG is DOWN over 23% since 2008! BND is up around 16% and LQD is up 2nd only to TLT at 28%. A 60/40 portfolio would most likely hold LQD, or something akin to it, a more aggressive portfolio may even hold HYG, and most would likely hold some kind of bond benchmark, such as BND. Therefore, the 60/40 portfolio performance is HEAVILY skewed in favor of bonds. Yet still fails to best Gold. 80/20 SPX/GOLD The 80/20 portfolio achieved returns of over 173%, but more importantly, note the "Robinhood" performance, there are significant periods of draw-down, in fact, there are 13 YEARS during which the portfolio failed to do anything! 100% SPX I don't know about you, but having you money do NOTHING for 13 years seems like poor financial management. So what are the take aways of this exercise? Firstly, blindly "buying and holding" equities over the long run is not a good idea (i am waiting for the FAANG fanboys to show up, what i have to say to that crowd is, if you think you can pick the next moonshot stock, please hit me up, i have some magic beans to sell you). Secondly, the 60/40 portfolio does perform better than 100% equities, but you will sacrifice gains as a result, largely because bonds tend to do very little most of the time, therefore the 40% capital allocation to them, in my opinion, is better used elsewhere, i would even prefer to you that capital, or some of it, to hedge a long equity portfolio and go to cash rather than buy and hold during a downturn. Finally, the best performer, the 80/20 SPX/Gold portfolio, this portfolio did experience more volatility than the 60/40 portfolio. But that should not scare anyone off, the period of draw-down from 2000 to 2005 was more to do with the time period i selected (post tech wreck) and the subsequent fall in the 80% of the portfolio that was long equities, NOT the 20% of Gold which had the portfolio consistently in the green from November 2005 to today. -TradingEdge
SP:SPX
by Profit_Link
6