Gold Futures & Copper Futures 2012-05-14



I'm getting buy signals in both copper futures and gold futures right now. Let's start by talking about gold futures. The signal I am getting is on the 60 minute time frame. Let me be clear, I am not making this trade. It is a bullish MACD divergence. The fact that it is on the 60 minute time frame tells me that if I were to enter it, it would be with the expectation on taking quick profits. By quick, I mean in 6 to 48 hours or so. The signal is not showing up on the daily gold chart, yet. I am, however, waiting for a bottom in gold on the daily time frame for a longer time frame move. I am watching some other markets right now, and I don't want to be bothered trading this small term gold futures trade. It would be a distraction, and it is not (at least I hope not) the signal for the larger scale move I am hoping for.

Second, I am getting buy signals in the copper futures on both the daily and the 60 minute time frame. Prices made a pretty big drop today (May 14), and are lower than their previous low. However, MACD remains above the MACD levels of the previous low which occurred about one month ago. Unless tomorrow's session brings much lower prices (thus it would probably break the MACD divergence), then we are seeing a buy signal on the daily copper chart. On the 60 minute chart, we are also seeing an MACD divergence in the histogram only. This can be a strong signal, but normally I wouldn't trade on it alone. Right now, I would trade it based on the fact that there is a signal on the daily AND the 60 minute chart. However, I am not going to trade this signal because I am still "getting to know" copper markets. I have not been watching this market very long, and I just don't feel comfortable entering into the trade. If I did, I would just work my panties into a bunch and perhaps end up screwing up the other trade(s) I have planned and am specifically watching for. Again, I am not going to make this trade in real life. I will however do a paper trade, and thus acclimatize myself to the copper market.

Some of the trades I am looking for are: bottom in sugar, top in Yen/USD, top in USDX (which may well be occurring as we speak), bottom in AUD/USD, and bottom in gold. My main focus right now is sugar, gold, and the USDX. It's likely that in the next week or two I will enter a trade in one of these markets.

Again, I will just restate that I have not entered the above trades. However, I am entering a paper trade in the copper market so as to acclimatize myself with trading that market.

Copper paper trade entry at 16:32 at 352.00.

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