Although this may be true, the government may indeed be able to prevent the apoplectic scenarios many feared would eventuate during the financial crisis, this does not mean that the governments and central banks of the world can conjure strong, consistent, sustainable growth in the global economy, nor a permanent bull market in stocks.

Sure pumping trillions into the system and slashing rates to zero is bound to have some effect and give markets a boost, but what now? The markets have had a shot of adrenaline, but it now appears there isn’t much else to get excited about from a bullish perspective.

In fact it is those who are short the market that should be getting excited, especially when one examines the technical position of the S&P and Dow at present.

As the chart above shows, there is a clear head and shoulders pattern on the S&P 500. This is a bearish formation and often considered one of the most reliable trend reversal patterns, so in this case the pattern suggests the trend is changing from up to down. The key points of the head and two shoulders are marked on the chart, but attention must also be paid to the neckline. This acts as a support level until broken, when it then becomes a resistance level. Also a neckline with a negative gradient, as is the case above, can be considered a more bearish formation than one with a flat or positively sloping neckline. The fact that the neckline is broken was the last confirmation we needed to become bearish on the S&P 500 and equivalent stock indices.

Looking to a shorter time frame, the green circles highlight the semi-bullish technical signals; the RSI is at 30.28 which is nearly in the oversold zone and the Full STO which is oversold and may give a bullish crossover. There is always conflict between technical signals, however the skill to executing a successful trade is in the trader’s ability to weigh up the different indicators and come to a conclusion on the direction of the market.

Another technical factor that contributed to our conclusion that US markets are heading lower is the “Death Cross” and appears to have just occurred, or is in the process of happening. This is when the 50 day moving average comes down and breaks down through the 200 day moving average and it is a bearish signal.

We do not have to look far to find a case where the Death Cross worked out exactly how it was theoretical meant to.

Although we do not foresee a decline as rapid nor as severe as that in the chart above, we do see a decline worth trading, so we are currently short on the S&P 500, and we will continue to build our short position on any mini rallies in the market.

Our premium options trading service OptionTrader, is currently averaging a return of over 40% per trade, in less than 40 days per trade. The service only costs $99, so one trade of $1000 at the average return of 40% bags a $400 profit, paying for your subscription more than four times over!

We aim to optimize our returns using options to limit our risk and maximise our returns, and anticipate great returns from this upcoming decline in the US stock market. Get on board now by visiting our website www.skoptionstrading.com for more information and to sign up now!

Considering the chart above, gold appears overbought and prime for a drop.  The relative strength index is at 72.68 and above the 70 level which would normally be a sell for us.  Although we always load up heavily on gold when the RSI is on or below 30, we never sell when the RSI hits 70 during major rallies. 

Why?  Well, simply because when gold decides to go on a run it generally disobeys the RSI overbought reading as it simply continues higher.  

A textbook case of this is during that run to $1225 in late 2009, the RSI was well above 70 in early November while gold was just $1100.  Selling in early November because of the RSI reading would have missed a whole $125 move upwards.  And shorting the yellow metal at that time would’ve proved fatal.  With this example fresh in our memories, we will not sell gold when the RSI gives us a sell signal during major rallies, and the current RSI reading 72.68 does not deter us from being long gold.

Prior to breaking the $1033 major resistance with a follow through to over $1200, gold broke the $720 mark which was previously another major resistance.  From $720 gold subsequently rallied to $1033, a move of over 40%.  Gold made another 40% move when it surged through the $500 barrier to $720.  

One may infer from these observations that we are presently likely to get another 40% move.  

Considering the breakage of the $1033 resistance area, this gives us a gold price for the present move of $1446.20.  This is a rough estimate but it would not be unreasonable to expect gold prices to move up towards $1400/ounce during this major rally, and then when one factors in the possibility that these large moves could become even larger than 40% as the gold bull market progresses and becomes more volatile, prices higher than $1400 appear possible.

We normally look to the ultimate inverse gold price indicator, the US dollar, for more clues on what gold prices might do and when.  But since gold and the USD have recently been moving up together, this analysis technique isn’t too helpful.  However, investors should not lose faith in the gold bull market simply because this inverse relationship hasn’t worked recently. 

One should keep in mind that in the last gold bull market, gold and the US dollar moved up together, so it is likely that this could happen again.  Also, the fact that gold is rallying in spite of USD gains is a sign of great strength in the yellow metal. 

We think that in the long term, as the USD resumes its bear market down trend, gold prices will continue to move higher.  In the shorter term we believe that if the Euro should find its footing and begin to rise, as a result of perceived improvement in the sovereign debt issues in Europe, the USD will drop back slightly and gold price will likely take a hit.  For now, gold has become a safe haven investment sparked by unstable conditions in Europe.  

An improvement in European debt conditions would likely take away some of the premium presently given to gold.  However, if this should occur we expect gold’s price decline to only be temporary, since USD weakness will ultimately drive gold prices higher.  Essentially this could work out as a win-win situation for gold, albeit with the second win scenario of EURO improvement slightly delaying gold’s rise.

The bottom line is that the major rally beginning with the break out above the previous all time high of $1033 is not over yet.  We will likely see $1300 plus very soon.  And, we believe that gold did not recently break above its December 2009 high of $1225 just to rally to $1249.  There is more to come! 

As we are now trading at all time highs, we are in unchartered waters.  Volatility should be expected, and in large doses.  Short term, gold could drop back to $1185.  Ideally, however, we would like prices to consolidate at these current levels so that $1225 will become a support level and a base for the next move up. 

To ensure that you optimize your investing and trading returns from the next move, please take a look at our website www.skoptionstrading.com. Recently our premium options trading service OPTIONTRADER has been putting in a great performance, with an average gain of 42.73% per trade, in an average of just under 38 days per trade.

OPTIONTRADER: 

Subscribe for 6 months - $99.00

Subscribe for 12 months - $179.00

Subscribe for 6 months - $99.00

Subscribe for 12 months - $179.00

“With gold enjoying strong support at about $1020-$1033 and GLD getting a great deal of support at around $100, selling out of the money Jan-10/Feb-10/Mar-10 puts on GLD with strike prices of roughly $95 appears to be a good idea to us, we would view the sale of those contracts as money in the bank”.

We suggested that investors who also believed gold was not going to fall below $1000, to short sell the $95.00 GLD Puts series (or equivalent gold option contracts), selling Jan-10 contracts trading at $0.32, Feb-10 at $0.76 and March-10 at $1.26.

Out of those contracts we suggested to short sell, ALL expired out of the money, meaning that they all ended up being worthless. So investors who short sold these puts could’ve have bought them back for as little as 1 cent on the day of expiration. Shorting contracts at $0.32, $0.76 and $1.26 and then buying back at $0.01, or even $0.05 is a very profitable trade, offering a significantly reward that we believed significantly outweighed the high risk of the trade.

This trade contains a higher level of risks than most trades we recommend in OPTIONTRADER. An example of a typical trade can be found here

Looking at gold going forward we are very bullish, since gold is making higher highs and higher lows and has a fairly clear path to $1200 again.

The situation that threatened to cast a shadow over the gold rally appears to be calming. We refer of course to the PIIGS, in particular the troubles in Greece, which were causing the EURO to slide and subsequently a rally in the USD, placing downward pressure on gold since it is priced in US dollars. We saw a relatively strong auction for Greek bonds last week and with more talk of bailout backing from the EU and IMF, it appears the situation is easing.. for now.

Given these factors and the conclusion that gold prices are heading higher, the question is how to best play the next move up in gold. Some like holding the physical metal, some the mining or exploration stocks, however we prefer options. Their versatility and adaptability means that any investor can take advantage of them and can tailor the risk in a trade to suit ones aversion to such risk, and by effectively managing the risk against the potential reward in the trade, we aim to optimize the risk/reward ratio for our subscribers and clients.

If you are tired of underperforming gold stocks and are interested in finding a different way to play gold, or are just interested in options trading and the service we offer, please visit our OPTIONTRADER page for more information. Subscriptions to OPTIONTRADER are only $99 for six months for $179 for a year, this includes being able to email us anytime with questions or comments.

Subscribe for 12 months - $179.00

Sam Kirtley

26th April 2010

Recently market action has made things very busy at OPTIONTRADER, our premium options trading service. Since our last update we have closed another 7 trades, with an average gain of 51.17% in an average of 37 days per trade, and in the last two months our subscriber base has more than doubled. For those interested in subscribing, below is a list of the closed trades since the last OPTIONTRADER update:

Bought GLD JAN-11 $100.00 CALLS @ $14.00 on the 6/10/09

Sold for $20.05 on the 18/11/09

43.21% Profit 43 days.

Bought GLD JAN-11 $100.00 CALLS @ $12.70 on the 29/10/09

Sold for $20.05 on the 18/11/09 57.87%

Profit in 20 days

Bought SLV JAN-11 $18 CALLS @ $2.20 on the 29/10/09

Sold for $3.40 on the 23/11/09 54.55%

Profit in 25 days.

Bought SLV JAN-11 $20 CALLS @ $1.70 on the 29/10/09

Sold for $2.30 on the 4/12/09

35.29% Profit in 36 days.

Bought GLD JAN-11 $105 CALLS @ $10.80 on the 29/10/09

Sold for $18.00 on the 4/12/09

66.66% Profit in 36 days.

Bought GLD JAN-11 $110 CALLS @ $10.60 on the 29/10/09

Sold for $15.90 on the 4/12/09 50%

Profit in 36 days.

Bought GLD JAN-11 $105 CALLS @ $12.00 on the 6/10/09

Sold for $18.00 on the 4/12/09

50% Profit in 59 days.

OPTIONTRADER prides itself on being versatile and adaptable to suit market conditions. We do not buy and hold and hope, we are prepared to go long or short on any entity if we believe the opportunity is there. Also, one does not need a comprehensive understanding of options trading to use this service, all signals are clearly explained and easy to follow.

Also although options trading does carry risks, by keeping a close watch on the markets and combining our expertise and experience together with ongoing research, we are able to limit the downside of any trade. Although we of course do incur losses from time to time, our winning trades far outweigh our losers and we place a large emphasis on limiting risks involved in any options trade.

We use a balanced portfolio and suggest weightings with each trade as to give a realistic representation of how subscribers would've performed with the recommendations.

All paid subscribers to OPTIONTRADER can email us questions or comments anytime, and we will respond as soon as possible, using within 24 hours.  

All this is just $99 for 6 months, or $179 for one year! We are currently formulating our trading plan for the coming months and expect to be placing a number of new trades in the coming weeks, so subscribe now to ensure you do not miss out on our trading signals!

Subscribe for 6 months - $99.00

Subscribe for 12 months - $179.00

If you have any questions regarding OPTIONTRADER or would like more information, please email skoptionstrading@gmail.com or visit www.skoptionstrading.com

Back in March we launched a premium options trading service, separate from our main websites on gold, silver and uranium, called OPTIONTRADER. Now that the service has been running for a decent amount of time, we thought we would post an update regarding how the service is doing. So below are ALL closed trades from the last 3 months, as they were sent to OPTIONTRADER subscribers:

Trading Record

Bought USO $40 Oct-09 Puts @ $4.30 on the 6/8/09.

Sold for $4.80 on the 31/8/09.  

11% profit in 25 days.

Bought KGC $20 Sep-09 Puts @ $1.10 on the 7/8/09.

Sold for $2.10 on the 18/8/09.  

90% profit in 11 days.

Bought IAG $12.50 Sep-09 Puts @ $1.00 on the 14/8/09.

Sold for $1.50 on the 17/8/09.  

50% profit in 3 days.

Bought GLD $100 Mar-10 Calls @ $7.60 on the 8/9/09.

Sold for $10.25 on the 4/11/09.  

34.87% profit in 57 days.

Bought GLD $100 Mar-10 Calls @ $7.80 on the 6/10/09.

Sold for $10.25 on the 4/11/09.  

31.41% profit in 29 days.

Bought GLD $90 Jan-11 Calls @ $16.10 on the 3/9/09.

Sold for $22.35 on the 4/11/09  

32.82% profit in 56 days.  

So thats an average gain of 41.68% per trade in an average of 30 days per trade!

This is a comprehensive list of trades for the period, with nothing omitted.  

In addition to this, we still have 7 positions that are still open, all of which are showing a paper profit of at least 30%.

Our balanced trading portfolio, modeled on OPTIONTRADER trading signals, is up over 27% from August to present.

OPTIONTRADER prides itself on being versatile and adaptable to suit market conditions. We do not buy and hold and hope, we are prepared to go long or short on any entity if we believe the opportunity is there.

Also, one does not need a comprehensive understanding of options trading to use this service, all signals are clearly explained and easy to follow. Also although options trading does carry risks, by keeping a close watch on the markets and combining our expertise and experience together with ongoing research, we are able to limit the downside of any trade. Although we of course do incur losses from time to time, our winning trades far outweigh our losers and we place a large emphasis on limiting risks involved in any options trade.

We use a balanced portfolio and suggest weightings with each trade as to give a realistic representation of how subscribers would've performed with the recommendations.

We feel this is fairer than misleading headlines such as "Recommendation X is up 123% when in reality only 5% of a portfolio may have been allocated to that trade so the gain is more like 6.15%.

All paid subscribers to OPTIONTRADER can email us questions or comments anytime, and we will respond as soon as possible, using within 24 hours. All this is just $99 for 6 months, or $179 for one year!

Subscribe for 6 months - $99.00

Subscribe for 12 months - $179.00

If you have any questions regarding OPTIONTRADER or would like more information, please email skoptionstrading@gmail.com

Central banks have dropped rates incredibly over the past year, meaning that savers are no longer earning a decent return on their savings.

In many cases the real rate of return is in fact negative, with the inflation rate being higher than the savings rate.

Canada – 0.25%

England – 0.5%

Japan – 0.1%

EU – 1%

USA – 0.25%

Switzerland – 0.25%

Australia – 3%

New Zealand – 2.5%

Hong Kong – 0.5%

In addition to this, many blue chip companies (those that aren’t fighting bankruptcy) are drastically reducing their dividends and in some cases abolishing them all together. US investors are facing the worst year for dividend cuts since 1938, Standard & Poor’s has forecast, as a growing tally of blue-chip companies across the globe slash pay-outs for investors.

Dividends have just recently been cut by JP Morgan Chase & Co., Dow Chemical Co., Motorola Inc., Pfizer Inc., Textron Inc., CBS Corp. and the New York Times Co. – to name just a few!

With these issues in mind, the question is: How can I earn a sustainable, attractive return on my capital?

Fortunately, we have some great strategies on this that are simple, practical and do not require massive investments to be worthwhile.

Plus using these strategies you can pocket a 41.99% annual yield - just be executing a few simple trades each year!

These strategies are explained in our new special income report, available now for just $59!

This is a one-off payment, with the report being emailed to you within 24 hours!

This report is designed for investment portfolio’s of all sizes, as little as $1000 can be allocated to this strategy and it will still be effective, generating a great return even after commission costs and the cost of the report, in fact its likely that your $59 will be covered within the first couple of weeks using this report!

Timing is crucial; getting this report in the next week would greatly increase your return as opposed to getting in a month from now – for reasons that will become clear in the report. You do not need to have prior knowledge of options trading or even an options trading account to use these strategies. So SIGN UP now below! You do not need PayPal account to purchase; you can simply use your credit card or bank account.

If you have any questions please feel free to contact us.

Regards, Sam Kirtley

www.skoptionstrading.com

We like to keep it short and sweet; the company the options were traded in, the gross profit and the time between opening and closing the trades:

Bank of America – 30% in 9 days

Bank of America – 26.72% in 3 days.

US Bancorp – 11.59% in 3 days.

Suntrust Banks – 10.65% in 8 days.

Bank of America – 28.5% in 3 days.

Citigroup – 22.92% in 1 day.

US Bancorp – 13.38% in 5 days.

That’s an average return of 20.5% in less than 5 days!

It is these type of moves, and more importantly this performance, that we hope to replicate in a new premium options trading letter, OPTIONTRADER.

To read more our past options trading articles click here and here.

As a paid subscriber to OPTIONTRADER you will receive:

- Real time trading signals, in sync with our own options trading portfolio via email directly to you

- Signals will be sent as and when we see fit, there could be three in a week, or none for three weeks, our focus is on sending actionable information to subscribers, getting trades right and making money

- Specific BUY and SELL signals, (not ambiguous suggestions), detailed what to buy, sell, when, how, why and how much capital to risk in each trade

- Explanation of our trading strategies - A monthly letter summarising our performance for the month

- An annual report giving an overview of our performance for the year

The current market environment makes formulating investment strategy difficult, as long or short positions can be severely hampered by large unpredictable swings in the market. However, by utilising the volatility in the markets, we can profit from swings up or down using our options strategies. For example, say you’re option trading portfolio was $5,000, and you put $1000 into each of our trades this year, you would have made just over $1437 profit, without reinvesting your profits! Relative to the size of your options trading portfolio you are already up 28.74%, in just over 2 months which is an annual rate of over 170% per year!

To receive our options trading signals please sign up to OPTIONTRADER for just $99 for 6 months or only $179 for a full year.

You will receive trading signals via email as soon as we trade, in sync with our options trading portfolio, explanation of our trading strategies as well as monthly and annual reports.  

All this for just $99!  

Even with a $5000 portfolio you could’ve paid for your subscription nearly 15 times over so far this year!  

So sign up now below!

Subscribe for 6 months - $99.00

Subscribe for 12 months - $179.00

Any comments or questions? Feel free to fire them in!

Hope to see you all as subscribers soon,

Sam Kirtley

OPTIONTRADER

SK Options Trading

If you have any comments or questions regarding our new website, please let us know.

Thank you,

SK Options Trading