July 13th, 2011 - Issue #592

In This Issue

1. Jim Wyckoff Hot Market: Gold
2. Part Two: Trading Psychology 101
3. Economic Calendar

1. Jim Wyckoff Hot Market: Gold

Gold Surges to New All-Time High; Bulls Have Technical Power

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Comex gold futures prices Wednesday scored a fresh all-time record high of $1,582.00 an ounce, basis August futures, as of this writing. Safe-haven demand is once again featured amid the European Union sovereign debt crisis. The gold market has also seen its near-term technical posture become much more bullish.

August gold futures bulls have gained solid upside near-term technical momentum the past two weeks, as prices are in a steep near-term uptrend and have rallied by more than $100.00 an ounce from the July 1 low of $1,478.30. The powerful gold market bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,600.00. It's likely the bulls will soon challenge or surpass that psychological price level.

Bears' next near-term downside price objective is closing prices below solid technical support at this week's low of $1,541.10. First resistance is seen at $1,585.00, $1,590.00 and then at $1,595.00. First support is seen at $1,574.30, at $1,570.00 and then at the overnight low of $1,564.60. Stay tuned!--Jim Wyckoff

Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!

2. Trading Psychology 101

by: Vadym Graifer of RealityTrader.com

In last weeks newsletter we published the first two parts to the trading psychology mini series: "Trading Psychology 101 and Trading Psychology - Stage 1. Blissful Unawareness". This week we will publish the last three sections in the series: "Trading Psychology - Stage 2. Acknowledgment, Trading Psychology - Stage 3. Clarity and Trading Psychology - Stage 4. Through the Looking-Glass." When you fill out the short form at the bottom of this article you will be able to download all 4 parts.

Vadym is the author of Techniques of Tape Reading (McGraw Hill 2003), How to Scalp Any Market (2005) and Master Profit Plan (2005). Vadym is a frequent featured speaker at International Trader's Expos and Financial Forum Conferences.

He is the founder of RealityTrader.com, a hands-on training company, working with a global community of individuals to achieve high levels of trading success.

Vad is a professional trader and an international private trading mentor responsible for turning around the trading careers of thousands of trader. He has also published articles and interviews in industry magazines, corporate product newsletters and trading forums.

Trading Psychology Stage 2 - Acknowledgment

So, our trader comes to realization that his inner mind a) greatly influences his trading performance and b) isn't always under his, trader's, control. Naturally, he wants to take the control over himself - and this is what it is about, self-control.

You can view it in the same terms as you do in life in general. We all found ourselves in a number of situations where the right way to act was not what our emotions dictated. A boss whose thinking doesn not light up the office with knowledge and wisdom? A kid right behind you whose only purpose in life seems to be to pound your seat with his feet during whole flight? Chatty co-worker who doesn't let your button go until he enlightens you about all the plot twists of the soap opera which you never knew existed? Leisure-minded driver in front of you who doesn't seem to recognize a green light as permission to move his foot from brake to gas? Go ahead, list all your gripes with the world, I'll wait couple minutes. OK, an hour.

... Done? Cool, let's continue. What is it that keeps you from giving all the offenders listed above the piece of or your mind (providing you do keep yourself in check)? Or, let's say, from grabbing the ice cream from the passerby when you happen to want it and he happens to have your favorite kind? Discipline does, reinforced by society customs that serve as limitations on our behavior. "Freedom of your fist ends where the freedom of my nose starts." Now, imagine all those limitations being removed and all reinforcements gone; and imagine that any negative outcome of your action are limited to you only so there is no moral or ethical brakes either. Are you guaranteed to stay as disciplined and restrained? Heck, some can't even with all those restraining factors in force! Are you more likely now to give in to temptation and act your emotions out?

3. Economic Calendar

Source: Moore Research Center, Inc.

* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!