Posts by Adam Hamilton - Zeal Intelligence:

Gold overbought

Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction. Naturally such big and fast gains have led to a surge in gold’s popularity among investors and speculators, as everyone loves a winner. But gold prices flow and ebb like everything else, and this metal has become very overbought today.

Trading stock fear 2

With the plunging stock markets terrifying traders, many are running for the hills. Steep selloffs always generate intense fear, a scary emotion from which we humans are naturally hardwired to flee. But in the stock markets, major fear spikes should be embraced. They mark the best opportunities ever seen to buy low, the necessary prerequisite to selling high and multiplying your wealth.

Bullish copper technicals

Copper is growing increasingly popular among speculators, who are catapulting this unassuming base metal up into the rarified ranks of market-darling commodities.  Neither precious like gold, nor immediately consumed like oil, copper’s price action is quite unique.  And despite some risky headwinds remaining, its technicals are once again turning bullish today.

Trading stock fear

The stock markets’ sharp June selloff is waking traders from their complacent slumber. The risk of a significant selloff, long ignored, has surged back to the forefront of market psychology. These pullbacks and corrections are healthy and necessary within ongoing bull markets, but they don’t end until fear grows great enough to rebalance sentiment. And today, stock fear is still too low for a bottoming.

PM summer doldrums

Traders beware, the dreaded precious-metals summer doldrums are now upon us! Summers are barren sentiment wastelands for the entire PM complex. Gold, silver, and the PM stocks tend to grind listlessly sideways to lower, vexing traders who aren’t psychologically prepared to weather this slow season.

Over-bought copper, copper stocks due for big-time correction

Red-hot copper hit another new all-time high this week, extending its mighty upleg to a 66.6% gain since June! As always after any strong run, investors and speculators are pretty excited about this essential base metal these days. But this incredible bullishness, along with overbought technicals, actually suggests copper is on the verge of a major correction today.