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Profiting From the Gold Rally

Last week we bought gold near its bottom, profiting as others panicked out of their positions. There will be more opportunities to profit from the continuing gold rally.

By Chris Vermeulen of TheGoldAndOilGuy.com

NEW YORK (

TheStreet

) -- It's been a very exciting week for those of us trading gold and the

S&P 500

stock market index as we have taken advantage of mass crowd behavior.

Trading against the masses can be very profitable, although it can also bring big losses, which is why one needs to think twice before jumping into a trade.

This week I decided to provide my midweek report in the form of a video, which should save you time while allowing me to provide you with more information. The video (see below) shows low-risk trading setups for gold and the S&P 500.

You may recall that last week we took a long position in gold at $1180-$1185 level, buying near the bottom as investors panicked out of their positions.

The chart below of

TheStreet Recommends

SPDR Gold Shares

(GLDS)

shows gold from its bull market in 2009 through the current rally, which is making us some decent money.

Although I am bullish on gold and think it will eventually reach $1400 per ounce, I do think there will be several more opportunities to cash in on gold's price action as this rally matures. I explain more in the video below.

Chart of SPDR Gold Shares

Gold and S&P500 Low-Risk Trading Setups

I hope the video helped you learn some important trading tools for extreme conditions in the market. As a friend of mine says, "Buy when they cry, sell when the yell." Doing this will bring profits month after month.

If you would like to get my trading alerts, please go to my Web site

www.TheTechnicalTraders.com

.

-- Written by Chris Vermeulen in Collingwood, Ontario, Canada

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.