GOLD has topped !

All that glitters is not gold.

At night gold glitters when new.

A 40 dollar pure good bracelet.

It is just a short bracelet. But Compared to heineken marketing rubberbands they are nice.

I beleive you are refering to comodoties that is the diference.
 
Trader that was interesting, as Oil does push up the prices of everything. Is there any relationship between oil & commodities? Do they always rise & fall like this? Is there any other relationship that can be seen?
 
Quote from Derrick1983:

Trader that was interesting, as Oil does push up the prices of everything. Is there any relationship between oil & commodities? Do they always rise & fall like this? Is there any other relationship that can be seen?
More...

When Oil goes up, all generally go up as oil (crude, petrol, diesel, peak) are important for transportation. Now, we transport commodities, so when oil goes up, transport costs goes up, thus, prices of others goes up - sort of a chain reaction.

According to this year, prices were so high, due to the dollar falling value. However, other factors like wars, unrest in the oil supplying countries, or more demand than supply in an area can also cause prices to rise.

The graph of relationship might differ on political, socio-economic grounds. This relationship is known as “Inter-market relationship”. It is important as it tells you how different markets affect each other.

To learn & understand more of the relationship between oil & commodities or any markets, please read the following Intermarket Thread:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=55456
 
sorry but have to disagree just a little.......;

most commodity prices have two components: futures and basis

"futures" are mostly subject to world supply and demand out into the future.
"basis" is mostly subject to the cost of physically getting the commodity from point of supply to point of demand.

oil mostly effects price of transportation to get commodity from point of supply to point of demand. Transportation is one of many components of the basis

hence, price of oil effects cash price with little or no effect on the futures component.
 
Quote from tr51:

sorry but have to disagree just a little.......;

most commodity prices have two components: futures and basis

"futures" are mostly subject to world supply and demand out into the future.
"basis" is mostly subject to the cost of physically getting the commodity from point of supply to point of demand.

oil mostly effects price of transportation to get commodity from point of supply to point of demand. Transportation is one of many components of the basis

hence, price of oil effects cash price with little or no effect on the futures component.
More...
to sum up...so you are saying that Gold will follow Oil's price decline downward...correct?how does the DOW movement factor in?
 
Quote from TraderSystem:

When Oil goes up, all generally go up as oil (crude, petrol, diesel, peak) are important for transportation. Now, we transport commodities, so when oil goes up, transport costs goes up, thus, prices of others goes up - sort of a chain reaction.

According to this year, prices were so high, due to the dollar falling value. However, other factors like wars, unrest in the oil supplying countries, or more demand than supply in an area can also cause prices to rise.

The graph of relationship might differ on political, socio-economic grounds. This relationship is known as “Inter-market relationship”. It is important as it tells you how different markets affect each other.

To learn & understand more of the relationship between oil & commodities or any markets, please read the following Intermarket Thread:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=55456
More...

Thanks TraderSystem for the reply. Read the thread, a good one, had many examples. But, can we have some new examples for today's world?
 
Depending on what risk levels u want

GLD

Pr = Probobality to your favour

High Low Pr(any condition)
95.0229 84.0966 72%
96.5573 82.6083 84%
98.1039 81.1333 90%
99.6627 79.6716 93%
101.2337 78.2232 95%
102.8169 76.7880 96%
105.7513 74.1913 97%
108.4545 71.8694 98%
113.9627 67.3362 99%


High Low Pr(Normal condition)
91.9695 87.1346 69%
92.2119 86.8896 79%
92.4032 86.6968 86%
92.5412 86.5579 92%
92.6322 86.4665 96%
92.6871 86.4114 98%
92.7173 86.3810 99%
92.7326 86.3657 100%



slv
Pr = Probobality to your favour

High Low Pr(any condition)
18.9198 15.7528 72%
19.3698 15.3283 84%
19.8250 14.9095 90%
20.2855 14.4966 93%
20.7512 14.0894 95%
21.2221 13.6880 96%
22.0992 12.9673 97%
22.9119 12.3289 98%
24.5810 11.1005 99%





High Low Pr(Normal condition)
18.0295 16.6255 69%
18.0999 16.5549 79%
18.1555 16.4993 86%
18.1957 16.4593 92%
18.2221 16.4329 96%
18.2381 16.4170 98%
18.2469 16.4083 99%
18.2513 16.4039 100%
 
Quote from Diego11:

All that glitters is not gold.

At night gold glitters when new.

A 40 dollar pure good bracelet.

It is just a short bracelet. But Compared to heineken marketing rubberbands they are nice.

I beleive you are refering to comodoties that is the diference.
More...

:) Interesting post. Please explain the last line: I beleive you are refering to comodoties that is the diference.
 
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