Posts Tagged ‘DGP’

The trading phenomenon

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Helpful lecture, about letting go of ego and paying attention to the charts when trading;  Allan uses Gold (DGP) as an example.

The trading phenomenon

Courtesy of Allan

Here are a couple of ways to trade Gold. First, a methodology that most of us are well versed in, reading about Gold and being mislead by the most persuasive arguments:

From Seeking Alpha [click on table for sharper view]:

Gold

Here is another way:

In the past nine months, DGP (double beta ETF for Gold) has risen from $15.28 to $19.74, a gain of about 30%. This represents a Buy & Hold return, with the leverage inherent in the double beta construction of this instrument.

Or, DGP can be traded with a rule-based trend following system. The system represented in the chart below traded DGP long and short during the same time period, September 2008 to July 2009. There were 12 trades, 10 winners and 2 losers. The total cumulative gain was $25.82, or about 170%. The average trade gained about 13%.

dgp chart
This is a Daily chart, more trades and a greater cumulative total can be seen in intraday time frames, but for comparison sake, I want to compare Daily returns.

We are talking about a system that trades about twice a month and yields about 5-6X the return of Buy and Hold.

By now you should recognize the 3-line point break chart, embedded with the Blue Wave Trend Model, Precision CCI and Precision Moving Average.

If you click on the Seeking Alpha link, you will find 47 articles written about Gold during the time frame charted above. That’s one site. Multiply that by 100 other sites writing about Gold. Ask yourself, how in the hell are you going to figure all that out and have any expectation of getting Gold’s investment story right?

This is the trading phenomenon. It is about…
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Zero Hedge

Powerful Winter Storm To Impact Millions Across Midwest And Northeast Through Weekend

Courtesy of ZeroHedge View original post here.

A powerful winter storm will track through the Plains, Midwest, and Northeast late in the week and through the weekend, dumping, in some areas, heavy snow and a mix of wintery precipitation, reported The Weather Channel

The storm will spread snow and rain across the West through Thursday. By Friday, snow, ice, and rain will be seen in the Midwest and Great Lakes. 

...



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Phil's Favorites

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

 

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

Courtesy of Graeme Gill, University of Sydney

News came from Moscow overnight that the Russian government had resigned, followed by the announcement that Putin would be recommending the current prime minister Dmitry Medvedev be replaced by the head of the tax office, Mikhail Mishustin.

Why has the government resigned, and what does it mean for the future?

Prior to the government’s resignation, President Vladimir Putin announced a series of proposed changes to the constitution to be placed before the people in a future referendum. I...



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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Insider Scoop

7 Basic Materials Stocks Moving In Wednesday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Mechel, Inc. (NYSE: MTL) shares surged 5.5% to $3.06 during Wednesday's pre-market session.
  • DRDGold, Inc. (NYSE: DRD) stock surged 2.8% to $6.09.
  • Yamana Gold, Inc. (NYSE: AUY) shares rose 1.5% to $3.74.
Losers
  • Harmony Gold Mining Co, Inc. (NYSE: HMY) shares decreased by 1.1% to $3.52 during Wednesday's pre-market session.
  • ...


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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The new year of 2020 has gold is poised to break out higher. Why is gold going higher? Maybe the FED's economists can explain .... or not.

Maybe these could be on the list:

- FED repo hundreds of billions a day.
- ECB made up tools to keep the European banks solvent.
- A sugar high stock market with Apple Inc and Microsoft looking like Bitcoin 2017.
- The US bond market is NOT confirming a strong stock market.
- Corporate profits have flat lined for 3 years while stocks soared each year.
- Knowing an US election year needs stimulus, and a lower US dollar is a first choice.
- China deal, will have a currency element to make it easier to do business. Lower US dollar.



Gold Gann Angle ...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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The Technical Traders

Is The Energy Sector Setting Up Another Great Entry?

Courtesy of Technical Traders

Another wild week for oil traders with missiles flying and huge overnight price swings in crude. As we recently pointed out within our current Oil research article, Oil and the Energy sector may be setting up for another great trade.  We recently commented on how the supply/demand situation for oil has changed over the past 20+ years. 

With US oil production near highs and a sh...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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