InvestMacro Forex News

GBPUSD failed to break above the upper line of the price channel on 4-hour chart, suggesting that the pair remains in downtrend from 1.5605, the price action from 1.5014 could be treated as consolidation of the downtrend. Range trading between 1.5014 and 1.5156 would likely be seen in a couple of days. Key resistance is now at 1.5156, as long as this level holds, we’d expect the downtrend to resume, and one more fall to 1.4900 is still possible. On the upside, a break above 1.5156 will indicate that the downtrend from 1.5605 had completed at 1.5014 already, then the following upward move could bring price to 1.5400 – 1.5500 area.

Daily Forex Analysis

By MoneyMorning.com.au

Dr Alex Cowie
Editor, Diggers & Drillers
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Diggers and Drillers:
Why You Should Invest in Junior Mining Stocks

By Chris Vermeulen – TheGoldAndOilGuy.com

Precious metals and their related mining stocks continue to underperform the broad market. This year’s heavy volume breakdown below key support has many investors and trader’s spooked creating to a steady stream of selling pressure for gold and silver bullion and mining stocks.

While the technical charts are telling me prices are trying to bottom we must be willing to wait for price to provide low risk entry points before getting involved. Precious metals are like any other investment in respect to trading and investing in them. There are times when you should be long, times to be in cash and times to be short (benefit from falling prices). Right now and for the last twelve months when looking at precious metals cash has been king.

Since 2011 when gold and silver started to correct the best position has been to move to cash or to sell/write options until the next trend resumes. This is something I have been doing with my trading partner who focuses solely on Options Trading who closed three winning positions last week for big gains.

In 2008 we had a similar breakdown in price washing the market clean of investors who were long precious metals. If you compare the last two breakdowns they look very similar. If price holds true then we will see higher prices unfold at the end of 2013.

The key here is for the price to move and hold above the major resistance line. A breakout would trigger a rally in gold to $2600 – $3500 per ounce. With that being said gold and silver may be starting a bear market. Depending what the price does when the major resistance zone is touched, my outlook may change from bullish to bearish. Remember, no one can predict the market with 100% accuracy and each day, week and month that passes changes the outlook going forward.

The chart below is on I drew up on May 3^rd.  I was going to get a fresh chart and put my analysis on it but to be honest my price forecast/analysis has been spot on thus far and there is no need to update.

Gold Daily Technical Chart Showing Bottoming Process:

Major technical damage has been done to the chart of gold. Gold is trying to put in a bottom but still needs more time. I feel gold will make a new low in the coming month then bottom as drawn on the chart below.

Silver Daily Technical Chart Showing Bottoming Process:

Silver is in a similar as gold. The major difference between gold and silver is that silver dropped 10% early one morning this month which had very light volume. The fact that silver hit my $20 per ounce level and it was on light volume has me thinking silver has now bottomed.

But, silver may flounder at these prices or near the recent lows until its big sister (gold) puts in a bottom.

Gold Mining Stocks Monthly Investing Zone Chart:

Gold mining stocks broke down a couple months ago and continue to sell off on strong volume. If precious metals continue to move lower then mining stocks will continue their journey lower.

This updated chart which I originally drew in February warning of a breakdown below the green support trend lines would signal a collapse in stock prices, which is exactly what has/is taking place. While I do not try to pick bottoms (catch falling knives) I do like to watch for them so I am prepared for new positions when the time and chart turn bullish or provide a low risk probing entry point.

While I focus more on analysis, forecasts and ETF trading another one of my trading partners who focuses on Trading Stocks and 3x Leveraged ETF’s has been cleaning up with gold miners.

Gold, Silver and Mining Stocks Conclusion:

Precious metals continue to be trending down and while they look to be trying to bottom it is important to remember that some of the biggest percent moves take place in the last 10% of a trend. So we may be close to a bottom on the time scale but there could be sharply lower prices yet.

The time will come when another major signal forms and when it does we will be getting involved. The exciting this is that it could be just around the corner. So if you want to keep current and take advantage of the next major moves in the market be sure to join our newsletters.

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Chris Vermeulen

By www.CentralBankNews.info     Israel’s central bank cut its policy rate by 25 basis points for the second time this month to 1.25 percent to “narrow the gaps between the Bank of Israel’s interest rate and the rates in major economies worldwide, in order to weaken the forces for appreciation of the shekel.”
    The Bank of Israel (BoI) already cut its rate in a surprise move on May 13 when said it would interven in the foreign exchange markets to weaken the shekel which has appreciated in response to due to the start of natural gas production, rate cuts by other central banks, continued quantitative easing in major economies and moderate global growth.
    In its statement today, the BoI said “the expansionary policy of central banks in major advanced economies is expected to continue, according to their announcements, in coming year as well.”
    Other factors cited by the BoI include inflationary expectations that are slightly below the midpoint of the central bank’s target, a lower budget deficit that will moderate the growth in demand, mixed global growth and government measures in the housing sector that are expected to moderate demand in the housing market.
    The BOI said it would continue to monitor economic developments and use its available tool to achieve price stability, encourage employment and growth, support the financial system and “in this regard will keep a close watch on developments in the asset markets, including the housing market.”

By www.CentralBankNews.info

The remarks from FeD-chairman Ben Bernanke last week concerning the US economy and future monetary policy is going to be the dominating investor-theme also in this week, says Jyske Banks Senior Strategist Ib Fredslund Madsen.

Furthermore in this weeks edition of ‘The Week Ahead’ we look back at last weeks minicrash on the japanese stockmarket.

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Video by en.jyskebank.tv

By HY Markets Forex Blog

The Asian stocks drop as the Japanese yen strengthened and Japan’s central bankers signify that the country could cope with the higher rate. The third largest carmakers’ in Asia ,  Nissan Motor , fell by 6.2% as yen gained against the  dollar .While 361 Degrees International Ltd dropped by 9.1% and David Jones Ltd. Slid 1.2%  .

The Chinese Shanghai Composite index increased by0.06 percent to 4,965.60, while Hong Kong’s Hang Seng index rose by 0.11perecent to 22,642.63.Australia’s   S&P/ASX 200 closed down at 0.36% to   4,965.60, while in South Korea, Kospi closed at 0.33percent higher to 1,979.97.

The Japanese Nikkei 225 slid 3.22 percent to 14,142.65, while Topix Index (TPX) dropped 3.4percent to 1,154.07, extending its worst weekly decline in over a year. Both have risen over 30% this year, topping other major equity indexes.

The Japanese market has indicated a record of losses after the Bank of Japan (BoJ) Governor Haruhiko Kuroda said yesterday “no sign at this point of excessively bullish expectations on asset markets or in the activities of financial institutions.”

Some of the board members of the Bank of Japan said in the late April the central bank should continue to consider steps to avoid the decrease in the liquidity in the Japanese government bond market.

“Regarding the effects of JGB purchases on liquidity in the JGB and repo market, a few members … expressed the opinion that it should continue to deliberate on measures to prevent a decline in liquidity,” the summary of the meeting released showed.

The post Yen strengthens as Asian stock market drops appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

Gold prices seized strongly on Monday after speculations regarding the rate of the money printing by central banks whipsawed prices, while the dollar slipped with worries regarding the U.S were close to reining in measures to maintain the economy.

Gold‘s historical 60-day volatility marked its highest and biggest weekly percentage gain in a month last week in over a year.“Gold has so many drivers that it leads to a lot of getting pushed around by one thing or another,” said Dan Denbow, a fund manager at the $1 billion USAA Precious Metals & Minerals Fund in San Antonio. “It makes it impossible to determine a direction.”
SPDR Gold Trust, the world’s biggest bullion-backed exchange-traded fund, surged 73% this year and holdings dropped by 0.24 to 1016.16 tonnes on Friday.

According to the director for Cambridge Cameron Brandt, money managers withdrew $1.57bn from the gold funds in the week ended. The sum of outflows from commodity funds was $1.89bn, according reports from EPFR.

According to Nic Johnson, the current volatility in gold prices is just temporary and investors would still return to buy metals. Gold has been one of the least volatile commodities in the past five years. Crude Oil and natural gas had the most variations.

U.S gold rises to 0.25 percent to $1,390.00. The Central banks are predicted to buy up to 550 tons this year, according to the World Gold Council.

The post Gold prices seizes firmly as stocks slip appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By MoneyMorning.com.au

What a week.

We don’t blame you if two consecutive days of big falls spooked you.

Although if you were an investor during the market volatility of 2008, then you should remember all too clearly what it’s like when the market gets really hairy.

Remember, despite last week’s two rotten days, the market is still only 5% below the recent high. That’s about half the drop seen by gold in recent weeks.

So don’t let the stock-haters scare you out of the market. Because the fact is, the stock market is still hands down the best place to build long-term wealth.

It’s for that reason we’ve spent the past five months working on a project to help you take part in some of the most spectacular investment opportunities on the planet – regardless of what happens in the broader economy…

There are three ways to build lasting long-term wealth.

The first is to build your own business from the ground up – like Richard Branson or Kerry Packer.

The second is to speculate on land values and high-density buildings – like Donald Trump or Frank Lowy.

Those are pretty good ways to build wealth. But they’re high risk. In both cases, if you’re serious about making a fortune, you’ve got to put everything into it. You can’t go half-arsed into a business idea. And you can’t do it with a big property deal either.

You’ve got to put everything on the line. For those who get it right, it can lead to untold riches. But for those who don’t get it right it can leave them wishing they hadn’t bothered, or at worst with huge debts and a useless business.

That’s fine for some. They like taking big risks. But it takes a certain type of person. And although there are hundreds of thousands of small businesses in Australia, not every business has delivered untold riches.

That’s why we believe the third option is the single best way to build wealth…

The Next Generation of Revolutionary Shares

Unlike starting a private business or property development, you don’t need to put your life or home on the line to fund it. In fact, you can start with as little as $500.

You know what we’re talking about. We’re talking about share investing.

But the project we’re working on isn’t to do with any old shares. It’s a particular type of share. We call them revolutionary shares.

So, what are Revolutionary shares?

They are shares in companies that are at the leading edge of technological advancement. They are to the market today what General Electric was in 1896…what Ford was in 1910…what Sony was in 1980…what Microsoft was in 1990…and what Apple was in 2003.

We’re talking about companies that are doing more than making a small incremental change to people’s lives. They are companies that are grabbing the world by the proverbial scruff of the neck and shaking it up.

Of course, you may wonder why we’d start on this project while the world economy is on the edge of collapse. That’s simple. There are two reasons why we’re embarking on this project today.

First, there’s no telling when or if ever the current financial system will collapse. The politicians and bankers have already postponed things for five years. Who’s to say they won’t stall the worst for another 5, 10, 15 or 50 years?

The second reason is just as important. The fact is, innovation and progress doesn’t stop for anyone. People and businesses innovate and change regardless of the broader market condition.

As business magazine Forbes noted on a report by the Kauffman Foundation:

‘Past recessions have been remarkably productive in the areas of business formation. And not any businesses, either. As the survey made plain, half the members of the current Fortune 500 were founded during recessions or bear markets.‘

That’s a key fact. It proves that despite the loud noises about collapsing this and bailout that, most businesses and entrepreneurs keep their heads down and get on with coming up with ideas and making money.

Opportunities Without Borders

So, while others focus on the negatives, we’re going full bore into focusing on the positives. It’s a big task…a huge task. That’s why we’ve recruited someone to help us out – Sam Volkering.

You’ve seen his name a few times in Money Morning. He has his own column in the weekend edition. In that column Sam highlights the latest advances in technology, healthcare and energy.

Sam is Port Phillip Publishing’s new technology analyst. It’s Sam’s job to trawl the world to find, analyse, research and – in the right situation – recommend investments in the world’s most innovative and technologically advanced companies.

This is a Revolutionary project without borders. If the best action is in Australia he’ll find it. If it’s in Silicon Valley, Frankfurt or Tokyo, he’ll find it there too.

You’ll get an idea of Sam’s work in the essay that follows these notes. And over the next three weeks we’ll reveal more of this Revolutionary project, including how you can secure your seat in this unique opportunity.

Remember, humanity and technology have advanced with every generation for the past 500 years. And over the longer term, humanity and technology have advanced over tens of thousands of years.

We don’t see why that trend should stop now.

Stay tuned for more…

Cheers,
Kris
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From the Port Phillip Publishing Library

Special Report: How to Buy Better Stocks

Daily Reckoning: Just a Cargo Cult

Money Morning: FutureWatch: 25 May 2013

Pursuit of Happiness: Fight the Tax Man, Invest in Dividend Paying Stocks

Australian Small-Cap Investigator:
How to Make Money From Small-Cap Stocks