Gold, Silver, Oil, Gas: A Chart View - TheStreet

The monthly chart of the gold stocks index shows how easy it is to trade the market and avoid large selloffs when using technical analysis.

Gold stocks are currently in a bull market, testing the 2008 highs. Until we are proven wrong, buying stocks after a pullback is a winning strategy.

>>See the first pick.

We have been in the

SPDR Gold Shares

(GLD) - Get Report

ETF for a few months as we ride this bull to new highs.

This chart clearly shows how buying dips in a bull market can really pay off. I do have certain criteria which must be met before buying dips so I know the odds are in my favor.

>>See the next pick.

Silver, along with gold and oil, is looking ready for an oversold bounce.

I don't think prices will jump and rally higher right out of the gate but eventually I feel they will head higher.

>>See the next pick.

Crude oil looks prime for the picking.

Crude oil is currently oversold and testing two support levels. The downside momentum is still strong so this selling could last another one to two days but I'm expecting it end to soon.

This is not a low-risk setup. This is more of a short-term aggressive contrarian play. This is for those of you who like heart-pounding plays.

>>See the next pick.

Natural gas has been taking its time to bottom.

Virtually every bottom-picker has been burned this year. I am starting to hear everyone get more bearish on it again, which is great/ It should bottom any day then!

Seriously, it cannot get much more bearish for gas. We don't have enough space to store it and companies are finding more natural gas in the ground every day. Because it sounds like a terrible investment it must be getting close to a bottom. If this is the start of a flat basing pattern, then I expect it could drag out for a few months before actually making a nice move up.

>>See the next pick.

The

DIAMONDS Trust

(DIA) - Get Report

ETF looks similar to gold and silver. I feel we are ready for a one- to two-day bounce, then we go a little lower to shake traders out of the market before heading higher.

Gold stocks and the broad market are in a bull market. The recent pullback has many traders worried. I think this an opportunity to bet into some positions before the next rally.

Buying the dips in a bull market is a low-risk trade until proven wrong. I think we still have more of a pullback yet, but then we could have a very profitable year-end Christmas rally.

Natural gas is just bumping along the bottom, I think. Not expecting any trade for a few weeks anyway.

Crude oil looks like it is ready for a move, whether it is a one- to two-day bounce or the start of a new leg higher. If you look at late September you can see the

United States Oil Fund

(USO) - Get Report

ETF broke down on heavy volume shaking most traders out of their positions just before the next leg higher, and this is what I feel it is doing now. Only time will tell.

>>See our new stock quote page.

Chris Vermeulen is Founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com . There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, silver, oil, and stocks in both bull and bear markets. Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.