The gold market jumped early on in trading today (6/17) based on economic data that came out indicating that the future wasn't quite as rosy as everyone first thought.
In today's video on gold, we share with you the 4 instruments that we are looking at and share with you our projections for the spot gold market.
As always our videos are free to watch and there are no registration requirements. All we ask is that you comment on our blog and let us know what you think about the gold market.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Trading Rabbit,
The gold market continues to be choppy to say the least. Overall our longer-term indicators both weekly and monthly remain positive on this market. On a daily basis our shorter-term daily trade triangle is negative. This would mean that if you are a short-term trader you should be out of the market for the time being. However, this indicator, the daily triangle is very close to turning positive.
All the best,
Adam
Adam,
What do you think of gold market?
Gold is testing long term resistance at 1240 once again, it looks not that good as gold in a bearish wedge pattern from weekly chart.
I long gold at 1240, which price should I place stop? Your advice will be highly appreciated.
Thank you!
Thank you Adam.
Enrique,
Thank you for your feedback.
I am not sure it is an exact ratio but I can say that the ETF GLD does track gold pretty closely.
Hope this helps.
All the best,
Adam
Hey Adam
How does gold perform in a war?
http://www.businessinsider.com/11-us-battleships-cross-suez-canal-into-red-sea-2010-6
Paul,
Thank you for your feedback.
I am not sure how that would work but given what I know I would expect that gold like a lot of commodity prices would move higher. Hopefully we will never have to find out.
All the best,
Adam
Dear Adam
Thank you for an excellent video - comparing movement across the the four instruments was enlightening, especially good choice since they are so tightly linked. For someone like me who is fairly new to trading, Adam's method is slowly but very surely becoming more and more obvious to me each time around. For example, using the 'quick ' method of measuring the movement by counting the blocks in the charts and adding it to the current position to calculate pontential upward movement makes 'easy visual sense' to me. It might have been useful to say something about the 'notes' instrument - which I suspect is less known to newbies than the other instruments.
kind regards
Gary
Is there a price ratio or approximate measure of how GLD prices track the Gold spot market?
I will not go near any long gold play at this time. This burst is likely just that--a burst. I'm looking for a reversal around mid-week.
I think Tom O'Brien's word on gold play Friday is wise. He is adamant about not going long on gold in any way; that it is highly likely to reverse by mid-week. I don't know otherwise, so I will heed my gold brother!
Adam, great video on gold's price increase prediction based on chart technicals. Thanks for letting me
know.
I'm new to your website and your analysis and the subsequent major move-up gave me new confidence in continuing to hold gold certificates, common shares (Goldcorp) and the ETF (G - US).
Considering fundamentals, am I wrong to believe that as long as the US is in the unfortunate position of ever increasing debts and deficits, the value of the US$ will continue declining? And since gold is denominated in US$, will it continue rising?
There is hope that once the Bush tax cuts are reversed, things might improve fiscally, and gold's rise may come to a halt. But this is some time away.
I will not get too overconfident, since the US of A has a tendency to come thru in the end. What are your feelings on a time frame?
Best regards,
Jochen
Jochen,
Thank you for your feedback. I'm going to stick with the Trade Triangles and use those as my guideline as opposed to trying to guess what the politicians are going to do or say.
Here are the rules for trade triangle technology.
How "Trade Triangles" work in stocks.
The major "Trade Triangle" to watch in trading stocks is the monthly "Trade Triangle" as this triangle determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that stock. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the stock. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly "Trade Triangle" for entering and exiting the market.
How to use trade triangles in futures and Forex.
In the futures and Forex markets we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.
All the best,
Adam
Adam
What do you think the probably is that the stock market is turning positive and will turn the monthly triangle positive?
DonH
Don,
Thank you for your feedback.
At this point in time I think the odds are very, very low that a monthly triangle would kick in for June or July.
All the best,
Adam
Thank you for the video on Friday yearly high and selling on Tues open. If you buy etf gld would it mirror option play.
Ernie,
Good question. I'm not sure how it would affect an option play.
All the best,
Adam
Thanks for the update Adam. It's worth mentioning that the DGP is double return on the GLD.
After the 14-June video I scaled in on the 15-June up candle using the DGP so I'm in the money
on gold.
I had never heard of ETN's before. I did a quick google and did you know that if the credit rating of the bank issuing the ETN goes down the ETN's price also goes down? This is even if the underlining index is going up.
I hope Deutsche Bank, issure of DGP doesn't have any skeletons in its closet.
Hey Adam,tell me again why Gold won't make a new high in 2010..bad seeds..don't bear good fruit...murph
Murray,
Thank you for your feedbACK.
You need to get with the program and move on. Good traders don't linger they move and respect the market.
All the best,
Adam
great and revealing video,
thanks!!
I have a question here.
Since GOLD is ready to bypass his all time highs and head for new thrilling highs, in your personal opinion, is ti safe to conclude that the time has come for the Equities to make their long awaited corection?
Is it the greed of the bulls in GOLD that drive the markets or the fear of the bears in equities?
hope to hear from you soon
Charalampos,
Thank you for your feedback.
Certainly the market action today in gold is very positive and I believe if we close over the $1,260 area we should see this market higher initially on Monday and Tuesday.
In equities our long-term monthly trade triangle is indicating that the trend is down and somewhere along the line we should see that trend resume. That could be today, next week, next month. The back of the upward correction has been broken and we expect to see a resumption of the secular bear market.
All the best,
Adam
Thanks Adam for providing so much wonderful education and insight on gold!
Dear Adam,
I have a question which raised after detailed learning last updated your video about Gold today on Friday 18.
As you mentioned if Gold closes today about $1240 market will likely reach $1300 according to the length of its pullback, but if we look back on the chart we can see that Gold is going up according previously created huge energy field which shows projection till $1264.5. I mean this previously major energy field was created on the top price closing at $972.9 on 2008/2/24 and its major pullback bottom at $681.3 on 2008/10/19, so if we add these numbers we will have destination $1264.5--- .So this is my concern, how correctly read it, should we take into consideration last smaller energy fild and trade till $1300 or follow $1264.5 as the projection coming out of major energy field.
I am looking forward to hearing from you at your earliest conveniency,
Regards,
Vadim
Vadim,
Thank you for your detailed comment and your projections.
One of my early counts that matched your count so it should be interesting to see how things turn out.
Gold could not close at its highest level today which is somewhat concerning. We'll have to see how this market plays out early next week.
All the best,
Adam