Trading Gold? Consider These Three Factors Now

February 24th, 2016 by VantagePoint Software


We aren’t living in your grandfather’s trading environment anymore. Traders need to keep their finger on a lot of pulses these days. Maybe you’re a Gold bug looking to focus only on the technical and fundamental factors affecting this precious metal. Or maybe you are also trading crude oil. But wait, there’s the Indian growth data to consider and what did Mario Draghi just say? Throw a bunch of economic reports and indicators as well as inter-related global markets together and everything from soup to nuts seems to matter to the markets now. The truth is, knowing where this precious metal is going can be difficult.

Regardless of where you fit on this spectrum, there are three macroeconomic factors you need to remember when trading Gold and one technical solution that can help you quantify this seemingly unquantifiable data.

How to make money when interest rates are negative

You can’t. It may seem counterintuitive, but if you put your money in the bank, you will have to PAY them to hold your cash. The Bank of Japan followed other central banks in going negative on rates in late January, a sign of the continuing global trouble from plummeting low oil prices, stalling international trade and slowing growth in China. Japan’s Prime Minister, Shinzo Abe, is seeking new ways to break the country’s cycle of decline. The BOJ joins a growing group of global central banks with negative interest rates including the European Central Bank, Sweden, Denmark and Switzerland.

So this all should be good for Gold, right? Global central bankers remain concerned about sluggish growth and below-target inflation. This loose monetary policy around the world should be a bullish sign for Gold as this is a hard asset that should gain in value.

Gold isn’t the only metal that matters

There are many things that affect the price of the metal. Comex copper futures tumbled to their lowest level in late January since April 2009. While they have rallied back recently, China’s insatiable appetite for copper has tumbled as their aggressive building and construction phase slows. Weak copper demand signals global growth is likely to remain weak, which will keep global central banks with their hands on the easing button, which should be a long term positive for Gold.

Stock market correlation affects Gold

When things were getting super dicey for US equities in January, Gold was rallying. The standard view is that these two markets are inversely linked: when the stocks go up, the yellow metal dives, and vice-versa. Why do we often see a negative correlation between the stocks and the shiny metal? When traders go into defensive mode, they may prefer Gold as opposed to riskier stocks. The saying goes that this metal is a safe-haven, so naturally it’s correlated inversely (or, at least, uncorrelated) to stocks during a serious financial turmoil.

The stock market has rebounded but volatility seems to be here for the long haul. These economic factors make it tough to quantify the true impact on the price of Gold. It’s difficult to decide which input should be weighted the most.

By combining Intermarket Analysis with a Neural Network process, VantagePoint quantifies these relationships. The end result is the output of an accurate forecast of where Gold is heading.

To see this technology in action watch the video below. You’ll see recent market forecasts for Gold as well as stocks that are impacted and influenced by the price of Gold.

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Back to the Future(s) with VantagePoint

October 21st, 2015 by VantagePoint Software

back to the futures

Today is “Back to the Future” Day, as was documented in the famous 1985 movie and rather than talk about fictitious movie scenes, we want to talk about profits – from Futures of course.

Most traders know that Futures trades often have big, trending moves and thus timing is the key to success in these markets. Too often though, traders will miss the onset of a big move because they’re relying on lagging indicators that fail to give them advance warning of a trend change.

A few weeks ago we demonstrated how traders can get into the Futures market with low margin. If you followed our forecasts back then you would have gotten into some incredible positions that led to lucrative profits as captured below.

  • Natural Gas – 22-day position that resulted in $1890 profit per contract.
  • US Dollar – 11-day position that resulted in $1427 profit per contract.
  • Cocoa – 13-day position that resulted in $2170 profit per contract, followed by a 6 day position in the opposite direction that resulted in $1030 profit per contract. Total profit = $3200 over 19 days.
  • Orange Juice – 20-day position that resulted in $2404 profit per contract followed by a 10-day position in the opposite direction that resulted in $3972 profit per contract. Total profit = $6376 over 30 days.
  • Live Cattle – 17-day position that resulted in $6599 profit per contract followed by a 10-day position in the opposite direction that resulted in $5447 profit per contract. Total profit = $12,046 over 27 days.

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How Can VantagePoint Software Diversify Trades in your Portfolio?

May 27th, 2015 by VantagePoint Software

How to Diversify Trades in Today’s Global Markets

Learn to diversify trades

If you’re looking diversify trades in your portfolio then it’s important to ensure you have a system that is accurate and consistent regardless of the market you are trading at that time. VantagePoint’s predictive technology works across all markets and conditions to help futures, forex and even stock traders become consistently profitable, no matter their different trading styles.

In today’s video we showcase recent successful VantagePoint forecasts for the following markets:

Futures chart – We’ll show you a Soybean forecast that helped VantagePoint traders profit $2650 per contract in just 11 trading days.

Forex chart – We’ll show you a U.S. Dollar/Canadian Dollar forecast that helped VantagePoint traders profit $4183 per standard lot over 7 days.

Stock Chart – We’ll show you a Earthlink $ELNK which helped VantagePoint traders cash in profits of 47% in just 36 days.

Why should I diversify trades in my portfolio?

Today’s markets are completely intertwined and have a global impact on one another. Rather than trading in isolation it’s important to have a global perspective on how other markets push and pull the price of the market you are trading. Understanding these complex relationships can help you win across the board when a trend takes place.

VantagePoint Software, developed in 1991 by Market Technologies, LLC holds 2 patents on the science behind applying Intermarket Analysis and Neural Network technology to a trading software. Our software identifies the 25 intermarkets for each stock, commodity, forex pair etc that you are trading and identifies what weight should be applied to each. The end result is a deadly accurate forecast for the next day’s trading range.

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Forecast Gold using these Market Correlations

April 2nd, 2015 by VantagePoint Software

How to Forecast Gold

Whether you’re trading commodities, ETFs or stocks, understanding the related markets that have an effect on the price of Gold will improve your trading results. But how can you accurately forecast gold with a high degree of accuracy? It might mean looking not only at gold, but at up to 25 markets that directly and indirectly affect gold – pushing the price up or pulling the price down.

market forecast gold

We take a look at Gold, $GLD and $ABX to uncover how understanding correlations between markets from a global standpoint can allow you to make smarter trades and consistent profits.

The patented technology in VantagePoint uses intermarket analysis predictive indicators to provide traders with information and confirmation days ahead of market trends.

You may also like: Gold Trading – How to Invest Wisely

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Using Neural Network Software to Improve your Oil Trading

February 10th, 2015 by VantagePoint Software

This Neural Network Software is Helping Traders Cash in on Oil

Even though you are benefiting at the gas pump, you may be frustrated to have missed profiting from the tremendous downward move in Crude Oil futures. Still, market volatility should continue well into 2015. So it’s time to ask yourself – is scientifically proven Neural Network Software exactly what I need to improve my trading results?

Neural Network Software Predicts the Price of Oil

So how do traders predict where Crude may be headed? 

It is helpful to view the commodity’s drop in another context. Analysts have repeatedly debated whether the 2014 collapse in oil was at the hands of supply concerns, or decreased demand expectations.  However, the answer might be simpler than supply and demand.  Another explanation could be that the value of crude oil hasn’t really changed relative to other assets, but because the world prices crude in dollars, the price adjusted to account for action in the currency markets.  Simply put, a majority of the drop in crude oil could, arguably, be explained by a stronger dollar.  In essence, when the dollar is stronger, it requires fewer of them to purchase crude oil.

It is these type of intricate intermarket relationships and economic analysis that even the savviest traders can miss. What’s needed is a process to consider all inputs and then predict future outcomes.

Enter Neural Network Software

These interconnections can’t be understood or adequately visualized on a chart. The only way to grasp the significance of the effects of related markets and quantify them in a systematic manner is through the use of sophisticated, complex mathematical processes such as ‘neural networks’, a mathematical approach ideal for finding hidden patterns and relationships in global market data’.  Neural networks are a sub-category of the mathematical discipline known as ‘artificial intelligence.’

VantagePoint Software employs neural networks to help traders of all levels. The complex calculations are done for you so you can feel confident trading volatile markets like Crude Oil futures because you have a significant edge on traders employing traditional technical analysis. This advanced trading technology is exactly the right tool to increase your confidence in unknown market conditions.

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