By Chris Vermeulen of TheGoldAndOilGuy.com
NEW YORK (
) -- It's been another crazy week for gold, oil and the stock market (as represented by the
). Since the market top in April we have seen large moves almost
Times like these are tough for traders, as one must enter and exit the market quickly in order to lock in profits. The good news is that things should start to smooth out in the next week or so if stocks can kick into rally mode. Nevertheless, we're at a critical juncture, and stocks could either rally or crash.
I have prepared
a brief video summarizing my current views about stocks, oil and gold
Here are some key points that I make in the video:
- Gold still looks bullish, but it's on the edge of a very sharp correction.
- Oil looks almost ready to make a run higher.
- The dollar appears to be forming a head-and-shoulders reversal pattern.
- The S&P 500 is at a critical point and could either rally or crash.
- If the greenback drops, it should cause gold, oil and stocks to rally.
- We are entering earnings season, and stocks tend to rally ahead of earnings reports.
I recommend that gold bugs skip this video. On Sunday I wrote about how gold kept making new highs this year and how prices were about to drop again. Within just a few minutes, emails telling me how wrong I was began flooding my inbox.
I knew gold was a crowded trade, but I didn't realize it was so crowded that investors would be willing to scold me harshly just for saying the precious metal was ready for a healthy correction.
-- 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.