Thursday, January 24, 2013

Gold-Backed Yuan CONFIRMED: Massive Squeeze Coming

from KingWorldNews:
King World News is pleased to break the news first in the world for our global readers that the World Gold Council has now confirmed the Chinese are going to back the yuan with gold. Today a legend in the business, Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, informed KWN of this development and also stated, “… the gold and silver bulls are going to begin to trample the bears at some point in the near future.”
Here is what Barron had to say: “This is what I have heard firsthand regarding the silver shortage. I spoke to a dealer where I purchase gold and silver in the United States. He just told me that immediately after the Presidential Inauguration his firm immediately began selling the hell out of monster boxes of US silver eagles.”
Keith Barron continues @

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Candlestick Charts: Quickly Spot Patterns With This Popular Charting Style

Candlestick charts were first used by rice traders in Japanese futures markets in the 1700s. They were introduced to traders outside of Japan in 1991, when "Japanese Candlestick Charting Techniques" was published by Steve Nison. This charting technique immediately gained widespread acceptance among traders.

Candlestick charts are available on many websites and this chart style is an option in every major trading software package. Candlesticks offer more information at a glance than traditional bar charts. Experienced traders can quickly spot patterns in the candlesticks and many patterns are formed with only one to three bars. They can be applied to any market and over any time frame.

To draw a candlestick, the opening and closing prices are used to draw a rectangle that forms the body of the candlestick and lines above and below the body are the wicks, which incorporate the high and the low prices. The body is usually filled in when the close is lower than the open signifying that price action in that time period was heavy and the price was pulled down by the weight of the selling. The white body of an up close can be thought of as prices floating higher and the lighter candlestick symbolizes that. These visual cues help the trader quickly assess the market condition.

Other visual cues are gained from the size of the body and the wicks. High volatility periods show larger candles. Strong trends will have a number of candlesticks with large bodies on the chart and small-bodied candlesticks often highlight market turning points. This is seen in the chart below.
How Traders Use It
Traders can spot a number of patterns using candlestick charts to identify times when the trend of the market is likely to change. One of the simplest patterns is the doji, which forms when the body is very small, indicating the open and close were very close to each other and price was almost unchanged. Traders believe that dojis represent a period of indecision in the market and the battle between the bulls and bears has resulted in a draw without a clear winner. These times when buying and selling pressures are relatively balanced usually don't last long and the doji often signals a large price move is coming.

There are dozens of other candlestick patterns that have been identified by traders. Many software programs and websites can scan for patterns and help traders find possible buys and sells.

Why It Matters To Traders

A number of traders use candlesticks in deciding when to buy and sell. This requires either a great deal of study in order to identify the patterns or software to highlight them. Candlesticks are also often combined with traditional indicators and a pattern such as oversold momentum with a doji near a four-week low in price would signal a buy. Other traders use them as a signal that a large move is possible. Traders spotting a series of candles with small bodies could expect a trend reversal and the candlestick chart would help them to be prepared for that.

More complex patterns consisting of three to five bars are also commonly used as trading signals. Candlestick patterns form very quickly, unlike traditional bar chart patterns, which can take weeks to unfold. This makes candlesticks the preferred tool of short-term traders.

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2 Stocks That Could Easily Double In 2013

My bull call for 2013 is well on its way to becoming a reality.

The first several weeks of January have been amazingly bullish for the stock market, as you will see in the chart. If this trend continues, then 2013 could truly turn out to be a year to be remembered as super-bullish.

The Federal Reserve stimulus combined with the real estate recovery and ultra-low interest rates are fueling the market higher. As the majority of the "Fiscal Cliff" fears turn into a distant memory, the market has little choice but to push higher in this economic environment. Obviously, my bullishness is pending no extreme "black swan" type of event.

All the U.S. stock averages are up more than 4% so far this year, with small caps leading the way as the Russell 2000 is up more than 5%.
As you can see from the chart below, six out of nine sectors in the broad-based S&P 500 are pushing higher this year. Energy and health care are leading the pack, with technology and utilities lagging. (more)

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McAlvany Weekly Commentary

When Will the Second Shoe Drop?

About this week’s show:
- Alan Newman calls for imminent 20% decline in stocks
- Brazil, Japan and China trade and labor trends
- Globalization stumbles – will it fall?
Read | Subscribe@iTunes

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Signs that a Correction Maybe Near in the SPX, RUT & DJIA

The great market prognosticators have by now came out with their 2013 predictions about financial markets. It seems to me to be a fool’s game to try to predict what financial markets are going to do in the future.
I want to be clear in stating that I do not know what is going to happen in the future. I do not know where the S&P 500 Index is going to trade tomorrow let alone 6 months from now. Most market pundits simply will not admit to this fact.
These same market pundits seemingly are unable to be honest about their own fallibility. In their own mind they believe it undermines their credibility or will hurt their forward sales for some book or strategy they are going to unveil. I for one do not prescribe to that notion, I believe in telling the truth.
The truth is that these so-called market experts do not know anymore than you or I about price action in the distant future. However, what I do know is that forward price action remains a mystery until its unveiled in the present.
Instead of wasting time discussing potential price action in the future, why not focus on a few pieces of information that have occurred that are known facts right now. I think the chart below points out that in the intermediate time frame, equity indexes are reaching extreme overbought conditions.
As can be seen above, the number of stocks trading above their 50 period moving averages is reaching close to the highest levels in the past 5 years. Many times when these price levels have been reached we witness a correction at the very least and any short-term gains are usually given back in short order. This is not to say that prices are going to sell-off tomorrow or in the next few weeks, however it is a warning that a correction is likely lurking in the not-so-distant future.  (more)

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Complacency Index at 69 Month Low!

by Dan Norcini
Trader Dan Norcini

The following chart of the Volatility Index or the VIX as it is more commonly referred to is stunning. With today’s further decline, the index has now reached levels last seen in APRIL 2007!
The VIX is a measurement of sentiment. It tends to rise and spike sharply during periods of fear or unease and decline during periods of complacency.
What we are basically seeing with today’s move is investor complacency is at EXACTLY the same level SIX MONTHS BEFORE THE BOTTOM FELL OUT OF THE US EQUITY MARKETS in late 2007. I remind you that at that time, hardly a bear could be found anywhere with the exception of a few sharp traders/investors, managers who were warning of extreme overvaluations.
Continue Reading at…

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Final Pulse May Be A Stunning $8,000 For Gold & $500 Silver / January 23, 2013
The following chart was put together exclusively for King World News by Kevin Wides, out of Switzerland.  Once again, this is a way for all King World News readers globally to take an important step back and look at the big picture in both gold and silver as we kickoff 2013.  These charts show the final pulse higher for gold may stretch to over $8,000, and over $500 for silver.
“Value is relative as Bloomberg recently reported on the sale of a 1794 silver dollar, which may have fetched as much as $7 million.  Scarcity is the driving  factor for value, from rare coins, to fine wine, to a Picasso.  Various King World News guests have commented about shortages in the physical metals, and also that Western central banks have likely leased out most of  their gold.
This means there is the very real potential for an exponential price move in physical gold and silver.  The other side of this value perception is prices fall when there is excess supply, and fiat money is definitely in excess supply….

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