Frequently Asked Questions
At times, we may discuss technical action of ETFs such as the report we sent out talking about the high volume outside reversal days on ETFs GLD and SLV, then the subsequent report we sent out discussing how these ETFs then marched to new highs right after such as day, which is indicative of the power behind QE (quantitative easing). QE means more money in the system being printed as the fed monetizes debt, thus the dollar continues to drop which makes the value of all hard assets rise. Thus precious metals continue their march higher (as of October 15, 2010).
Since there are many variables of which any can change on news, it makes predicting the future an often futile exercise. As noted futures trader Ed Seykota, likes to say, the future doesnt exist so stay in the present. Price/volume action of leading indices and leading stocks is the present on an intraday and day-to-day basis. ETFs showing particular strength or weakness are likely to continue that trend, as on an intermediate term basis which is measured out in weeks, and not on an intraday, day, or swing trading (2-5 days) basis, strength usually leads to more strength and weakness usually leads to more weakness.