Trading Gold? Consider These Three Factors Now

February 24th, 2016 by VantagePoint Software

gold

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.

You may also like:

VantagePoint Software Forecast

Tell Us What You Think

After Market Trading: How to Be Profitable

October 23rd, 2015 by VantagePoint Software

after market trading

Whether you are an active day trader who can’t get enough action during the six and a half hours the stock exchanges are open or an investor looking for new profitable opportunities, after market trading offers an attractive option. The after-market can be especially profitable for traders who have an added technological edge, like VantagePoint Intermarket Analysis Software.

After Market Trading Defined

The stock markets have gone through many changes, from the old days of hand writing trades on chalk boards to the high speed electronic networks of today. Still, in the recent history of the exchanges, most traders could only buy and sell stocks during the regular business hours of major stock exchanges. For most US Exchanges (NYSE, NASDAQ,), regular business hours is typically defined as 9:30 AM – 4:00 PM Eastern Time. Trading before and after regular exchange hours first became available for large institutional players in the early 1990s.

Today a number of electronic trading networks (ETN) allow all investors to keep trading even when the big money players have stopped participating. Nearly all the major online brokerages and full-service brokerage firms will allow you to enter buy and sell orders for stocks to be executed after the exchanges close. Some may charge extra commissions and fees for after hours, but not all, so you’ll need to check with your broker.

However, with any investment there are inherent risks. Here are a few risks involved with after market trading:

  1. Increased volatility. While AAPL, NFLX, GOOG and the other names should be okay to trade in the after-market, for stocks with limited trading activity, you may find greater price fluctuations than you would have seen during regular trading hours.
  2. Lack of liquidity. During regular trading hours, it is easy to match buyers and sellers as there is sufficient interest on both sides of the market. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades.
  3. Bigger bid ask spread. Less trading activity could also mean wider spreads between the bid and offer prices. As a result, you may find it more difficult to get your order executed or to get as favorable a price as you could have during regular market hours resulting in slippage. 

VantagePoint Provides an After-Market Edge

Considering the inherent risks, you need a tool to help you find profitable trading opportunities in the after-hours. VantagePoint can help as it forecasts the big trending or gap moves in a stock that often happen in the after-hours market due to an earnings announcement or other important news.

How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets, VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes. This process provides a unique perspective on markets that uses foresight, instead of hindsight, allowing you to find profitable opportunities if you are after market trading.

VantagePoint Software Demo

Tell Us What You Think

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.

VantagePoint Software Demo

Tell Us What You Think

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.

VantagePoint Software Forecast

Tell Us What You Think

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

VantagePoint Software Forecast

Tell Us What You Think