Although I usually write about the precious metals markets, we regularly apply the Equity Management Academy's (EMA) proprietary Variable Changing Price Momentum Indicator (VC PMI) to dozens of financial and commodity markets. The artificial intelligence algorithm was developed by Patrick MontesDeOca, CEO and founder of the EMA. He has more than 30 years of trading experience and developed the VC PMI to take advantage of the relative volatility of a given market. Today I thought I would provide some information on gold and silver, but also several other markets we regularly analyze using the VC PMI to give a sense of its universal applicability to markets.
The report below is based on the EMA’s new VC PMI Early Bird Update from Monday, July 9, which is a new confidential market update for long-term EMA subscribers.
The gold market has completed a perfect reversion to the mean from the $1253 level, as of May 5. It met the second target of the VC PMI above and traded between the sell 1 (S1) level and the average price, until it accelerated to a high of $1256.90.
If you’re a short-term, swing or position trader, the VC PMI recommends buying into $1242 as the breakout confirmation.
I want to stress that the VC PMI has given subscribers to the EMA service enough information based on the AI algorithm to take positions as a self-directed individual and benefit from the movements of the gold market, including the recent 43 to 63 move in gold—a $2000 move.
Gold has come down from a high of $1266.90 to the Sell 2 (S2) level of $1263 and a close below $1263 is going to activate $1259 as a target.
We’ve taken profits up here and we aren’t going to short the market, but wait for the price to adjust to the buy 1 (B1) and buy 2 (B2) levels in blue (on VC PMI charts) and then get back on the long side. The market has broken out in what appears to be a 2 to 3 month trend in closing above the sell 2 level of 1262, which is going to accelerate the momentum.
The average price for the day is $1256, so we’re way above the average price. We’re looking for opportunities in the gold market over the short term at the B1 1255 and 1250 B2 level. The VC PMI recommends that intermediate- to long-term traders hold gold positions until you meet the long-term targets the EMA published over the past few months.
The market met those targets from the second level made a few days ago, sometime on July 5 at $15.97. It’s taken the target of S1 at $16.18 and went as high as $16.26, close to the S2 level. Then silver reverted back down and we recommend, based on the VC PMI, to wait to get back to the B1 16.04 and 15.95 B2 levels before you go long again as we watch for bigger trends.
Crude is at $73.47.
The market is overbought and we are looking for short signals at the S2 75 or 74.42 S1 level. We are neutral to bearish on crude.
Soybeans are trading at 8.7375, down 20.
We’re looking for the soybean market to trade below the VC PMI average of 8.82, to come down to the B1 of 8.66 or B2 of 8.37 over the next couple of weeks. We recommend going long on any corrections for July, into the B1 8.60 and 8.48 B2 levels.
Wheat is trading at 5.06, down about 9.25 cents, trading last at the B1 level of 5.04. The average price according to the VC PMI is 5.10. We are looking for active signals, since wheat has aligned itself already with the B1 503 and 498 B2 levels.
The Mini S&P is up 13 to 2776. Therefore, it is trading at the VC PMI”s S1 level of 2776, which has activated a setup.
We are looking for short signals from the S1 level of 2776 on a close below. That would activate the average price of 2754 as the first target. The extreme below the mean (B1) is 2741, and the B2 is 2719.
The EMA's Early Bird update provides a recorded (audio) chart analysis of the VC PMI automated signals and corresponding price structure of the supply and demand levels for the day, which provides crucial entry, exit and stop points for day trading commodities, stocks and ETFs.
Thirty minutes after the stock market opens, at about 7:00 a.m. PT, an email attachment with an audio file and a chart PDF is sent to long-term EMA subscribers. The attachment provides up-to-the-minute analysis of the activity of the VC PMI during the first 30 minutes of the day trading session and the overnight composite.
The VC PMI Early Bird Update is an exclusive and confidential service provided as a courtesy to long-term subscribers of the Equity Management Academy. The report is prepared by CEO and lead trader Patrick MontesDeOca and is available subject to his schedule and availability.
MontesDeOca explained that the Equity Management Academy is not a brokerage. It is an educational center.
We provide the AI methodology embedded in the VC PMI to trade the relative implied volatility between B1 and B2, and S1 and S2,” MontesDeOca said. “If you’ve been following the EMA reports on Seeking Alpha, you can see the ability of the VC PMI to provide information about where to watch for market turning points in a given market. We are teaching our subscribers how to execute on their own time frame the methodology, which involves learning the trigger points based on B1 or B2 and S1 and S2 at different times as indicated by the VC PMI and the market. We teach you how to trade the relative extremes above and below the mean, and how to manage risk by showing exactly where to place stops.
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. It is for educational purposes only.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.