Author Archives: pmontesdeoca

Silver – The Canary in the Gold Mine?

 

On September 20, Patrick MontesDeOca, CEO of the Equity Management Academy, reviewed an Academy report published over the weekend that correctly predicted the activity in the silver market this week.

 

MontesDeOca said the silver market was “Going to be pretty volatile” this week with the FOMC meeting Wednesday, which will consider what to do with interest rates. He said, “I think it is simply what I call chatter. To reduce that chatter, I use this methodology shown in the live trading room” at the Academy.

 

 The methodology is the Academy’s VC Price Momentum Indicator, which relies on identifying supply and demand.

 

MontesDeOca said that once silver went through the resistance level on July 1, it moved “decisively up,” accelerating as was predicted in the weekly Academy report.

 

Silver is now trading just below the July 5 high of $21, 22. MontesDeOca said the price has got to the extreme above the mean. Using moving averages, the Academy’s methodology plots specific levels and pivot points for when to enter and exit the market. As one pivot point is reached, it triggers the next set of points.

 

MontesDeOca said, the market has “supply to challenge at $19.50 to $19.71. If the buying/demand energy is greater than the selling energy, with a price above $19.71, then this level of resistance will change into a level of support.”


In a weekly Academy report published last Saturday, MontesDeOca said, “The market in silver seems to be telling us a different story than the gold market.”

 

Silver closed Friday at $18.86, which was below the 9-day moving average that the Academy uses to identify the trend momentum of $19.53. Therefore, he said, the market is “bearish,” because it closed below the average. If the market closes above the pivot point of $19.53, it would negate the bearish sentiment.

 

The mean for the average price this week is $18.97. The market closed at $18.86 Friday, but if silver goes through $18.97, it is a bullish indication, because the market will penetrate the average price of $18.97. When the silver market moved through $18.97, it negated the bearishness, and kicked in a buy signal from $18.96 or below. The low was $18.71 on the 16th and on the 19th the low was $18.84. However, the market came right below the mean of $18.97 and closed above it, which, MontesDeOca said, “basically indicated the market sentiment is turning bullish.”

 

Subscribers to the Academy are told what to look for at the start of the week with specific entry and exit points. For example, $19.23 to $19.61 is the new target. The high yesterday was $19.38 and the high this morning was $19.36.

 

“We are stabbing into the weekly targets,” MontesDeOca said, “and the daily targets we have now in the red or supply zone are $19.50 to $19.71.”

 

Between the daily prices and the weekly prices in the report, the market is beginning to trade in that cluster of $19.61 to $19.71 which is the resistance level for the market, combining the daily and weekly resistance.

 

MontesDeOca said, “We are beginning to see a cluster of supply at these levels. What we want to see is enough demand to take out all that supply in this vicinity, close above it, and then we’re looking at pretty much targeting the previous high which is $20.25. Then $21.22 comes into play.”

 

The Equity Management Academy offers investors who want to become traders the opportunity to learn in a simulated, real-time trading room as they watch MontesDeOca trade accounts. After three months of simulated trading, if they feel confident they have learned enough and are approved by MontesDeOca, they are eligible to apply to join the real trading room and trade their own portfolio. For more information on the criteria to join the Academy’s select group of investors, please email support@ema2trade.com or call 805-418-1744.

Gold and Silver Upside Intermediate Targets Completed

 

In a September 8, 2016 podcast, Equity Management Academy CEO Patrick MontesDeOca reported that the gold and silver markets had met the upper targets set in the Academy’s August 26 report. The report provided Academy subscribers with the information to come into the week and know exactly where they should execute trades.

The gold futures contract closed at $1,326.90 on Friday. MontesDeOca said that the market closing below the 9-day moving average of $1,344 indicated a bearish trend. It also serves as a pivot point. If the market closes above $1,346, it would negate this short-term negative trend. The market was trading at about $1,357 yesterday and came right back down to $1,341. Therefore, the level of demand is $1,341. If the market closes below $1,346, MontesDeOca said, “It will indicate a bearish trend.” If the market closes above $1,332, the mean, then it is a very bullish indication. If the market reaches $1,346, it will serve as a second pivot point confirmation and will activate $1,357.60 as the next target.

In silver, the market closed at $19.37 Friday, below the 9-day moving average of $19.78. If the market closes below $19.81, MontesDeOca said, we are probably going to test the $18.78 level. The market recently ran up to about $20.23, which was just above the weekly targets that the Academy provided in the August 26 report of $19.65 to $19.94. MontesDeOca said that “the targets in silver on the weekly swing have been completed.” The targets were actually met on Monday.

Since that high, we have seen a bit of a correction. MontesDeOca said, “Now we wait until the price adjusts” and for “the market to tell us whether the supply is greater than the demand.” If silver trades above $19.94 and gold above $1,350, it would validate the next leg up for both markets.  

The mission of the Equity Management Academy is to provide a select group of investors with the tools and information to invest wisely and well for the long-term in these tough economic times. For more information about the Academy and Patrick MontesDeOca or a free guest pass for the transparent real-time trading room, please email support@ema2trade.com or call 805-418-1744.

By Equity Management Academy

Equity Management Academy

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TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

GOLD and SILVER Long Term Cycles Converge for New Bull Market – SPECIAL ALERT!

 

In a September 6 podcast, Equity Management Academy CEO Patrick MontesDeOca predicted a drop in the stock market and a major bullish market in precious metals.

MontesDeOca discussed the 90-, 60-, 45- and 30-year cycles that the Academy uses to try to identify where the markets are heading.

Ninety years ago was 1926, just before the Great Depression. Sixty years ago was the assassination of John F. Kennedy, which led to Lyndon Johnson becoming president, with Richard Nixon as Vice President.

“This was the beginning of America,” MontesDeOca argued, “becoming the most corrupted form of government in the next 60 years.”

Forty-five years ago was in the middle of the Nixon administration. In 1971 Nixon took the US off the gold standard and, MontesDeOca said, “That was the beginning of the end of the US dollar,” since it was turned into a fiat currency.

Thirty years ago was the 1987 stock market crash, with the biggest single-day loss ever of 22.6%.

“What we are getting during 2016,” MontesDeOca said, “is a cluster alignment of all of the cycles coming together…What this tells us is that we are about to experience one of the most incredible moves in precious metals to the upside, one of the biggest drops in the stock market to the downside, and essentially we are witnessing the end of fiat currency as we know it. The US dollar has come to the end of its reign that was basically set in motion 90 years ago and implemented 30 years ago.”

MontesDeOca warned that the “central banks have never been in such a precarious situation regarding world debt, which is running at record levels” and “we anticipate that bubble to burst in a big way in 2017.” He said, “Beware and prepare; 2017 will be one for the record books.”

The cycles are supported by recent Academy reports based on market means.

In the gold market, the December gold futures contract was at $1,325.90, which, MontesDeOca said, “is very bullish long term.” However, if gold closes below $1,218, “this bullish trend will go neutral.”

The price momentum or average monthly price is $1,269 and the market closed above that mean, which, MontesDeOca said, confirms that the price long term is bullish. If gold closes below $1,269, this long-term bullish momentum will be neutralized. If it closes above $1,269, it is bullish and “you should look to take your profits” as we reach $1,441 to $1,556 levels. MontesDeOca is anticipating the market to hit $1,556.

The strategy he recommends for gold is bullish, long term, with initial stops at $1,269 and a secondary stop at $1,218. If gold closes below $1,269, the market may come down to the lower levels of demand at $1,154 to $983. Note, MontesDeOca said, that the second level is under $1,000. If for some reason the market were to break to those levels, MontesDeOca said, “This would be the lowest level you could possibly buy the gold markets, if you missed the previous rally which bottomed in December 2015.”

Turning to the silver market, the December contract is at $19.47, which is above the $16.44 moving average. MontesDeOca said this is “very bullish.”

With the market above the mean of $18.45, long-term momentum is bullish. The Academy pointed this out in an August 26 report. MontesDeOca said, “We told you to exit shorts in silver at $18.31 to $17.57, and the low so far is $18.44.” Since that low, the market has risen to $20.20. MontesDeOca said, “Silver closing above $18.45 tells you to look to take profits on your long term positions as the market reaches $22.27 to $25.07 levels this year.”

If you are interested in a guest pass to see the Academy’s live trading room , please email support@ema2trade.com

By Equity Management Academy

Gold and Silver – Yearly VC Futures Price Momentum Indicator – 2016/17

Signals are automatically generated by integrating electronic yearly statistics with proprietary algorithms.

GOLD

YEARLY SUMMARY

TREND MOMENTUM: 1218 Bullish

PRICE MOMENTUM: 1269 Bullish

PRICE INDICATOR

EXIT LONG:

  S2) 1556

  S1) 1441

EXIT SHORTS:

 B1) 1154

 B2) 982

TREND MOMENTUM

The December gold futures contract closed at 1325.90 . The market closing above the 50 MA 1218 is confirmation the long – term trend momentum is bullish. A close below the 50 MA would negate the long -term trend momentum to neutral.

PRICE MOMENTUM

With the market closing above the yearly VC Price Momentum Indicator of 1269 it confirms that the long – term price momentum is bullish.  A close below the VC, it would negate the long – term price momentum to neutral.

PRICE INDICATOR

Cover shorts on corrections at the 1154 – 983 levels and go long. If long, use the 983 level as a long – term Stop Close Only and Good Till Cancelled order. Look to take profits long – term, as we reach the 1441 – 1556 levels during the year.

SILVER

YEARLY SUMMARY

TREND MOMENTUM: 16.44 Bullish

PRICE MOMENTUM: 18.45 Bullish

PRICE INDICATOR:

EXIT LONG:

  S2) 25.07

  S1) 22.27

EXIT SHORTS:

 B1) 15.65

 B2) 9.82

TREND MOMENTUM

The December Silver futures contract closed at 19.47. The market closing above the 50 MA 16.44 is confirmation that the long -term trend momentum is bullish. A close below the 50 MA would negate the long -term trend momentum to neutral.

PRICE MOMENTUM

With the market closing above the yearly VC Price Momentum Indicator of 18.45, it confirms that the long – term price momentum is bullish. A close below the VC, would negate the long-term price momentum to neutral.

PRICE INDICATOR

Cover short on corrections at the 15.65 – 9.82 levels and go long. If long, use the 9.82 level as a long – term Stop Close Only and Good Till Cancelled order. Look to take profits long – term, as we reach the 22.27 – 25.07 levels during the year.

 

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.

Equity Management Academy

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TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

SILVER – BOTTOM CONFIRMATION COMPLETED

In a September 1, 2016 podcast, Equity Management Academy CEO Patrick MontesDeOca confirmed that silver had reached the bottom forecast in an August 31 Academy report.

 

In the August 31, 2016, silver report, MontesDeOca said that silver was “showing us some very, very strong signs that something of a significant nature is about to happen.” The Academy was carefully using their algorithms to identify the bottom of the market. The August 31 report recommended exiting shorts at the $18.65 level. The low was $18.44 on the 25th, with a rally to $19.04 on the 30th, before silver got smashed by some central bank selling.

 

The August 31 report also mentioned that gold should reach a bottom of $1,315 to $1,304. MontesDeOca said, “The gold market is validating and confirming a strong level of demand,” with the $1,315 area “a key buy-in level of demand.” Gold is trading at about $1,316 today (September 2) with a low of $1,305.5.

 

The Academy’s algorithms suggest that if gold comes down to test the $1,316 level, it is a buy one level. The Academy’s algorithms show subscribers blue to indicate the demand area, while red indicates a sell sign. As the gold market moves above the mean meeting the upside targets on the daily of $1,318, MontesDeOca said that the next target is $1,325 on the daily chart.

 

The August 26 report clearly and specifically indicated where subscribers should cover their positions in gold at the levels in blue, and to exit shorts at $1,315 to $1,304. MontesDeOca said gold was doing a double test at the $1,306 level with the market potentially making a key reversal to the upside, validating the Academy’s previous report. The report recommended taking profits from shorts into corrections at $1,315, and then go long on a weekly reversal. The report also told subscribers where to take profits this week; at $1,343 to $1,360. The report said that $1,332 is the pivot point and the immediate target, with $1,343 to $1,360 the upper levels of the extreme above the mean.

 

The report said to exit silver at $18.31 to $17.97. So far silver has a low of $18.44 on the 25th. MontesDeOca said, “The silver market appears to be showing a lot more resilience than the gold market.” He said silver could get down to $18.31, but any trades above $18.78 would be extremely bullish, and a close above $18.78 would trigger weekly stops and negate the bearish signal. If silver closes above $18.78, it will activate the targets at $19.12 to $19.59 for the next week. MontesDeOca recommended placing stops at $18.31.
The goal of the Equity Management Academy is to provide a select group of investors with the tools and information to invest wisely and well for the long-term in these tough economic times.  For more information about the Academy and Patrick MontesDeOca, please email support@ema2trade.com or call 805-418-1744.

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