23 thoughts on “ALERT: Daily Trade Triangle Now Positive On Gold”

  1. I just put in all sell stop limits for all gold holdings. It's REALLY important distinguishing the differences between: stops, stop limits & trailing stops - whether selling or buying. I'm glad I refreshed myself before doing so 🙂

  2. Adam, very opportune your advice. I just started selling some positions considering (among other things) that past sell day-triangle call at 1168 or something.

  3. Twiggs set the interim gold target at $1300 some time ago. Marketclub charts still look plenty strong but gold is starting to go vertical... feels bubbly. What could send spot prices down? Big investment banks deciding that the suckers are ripe and start selling off their huge holdings? They might decide to drive down the price, kill off the leveraged small investors and then get back in at $600 or so. I was mulling and have now pretty well decided to buy some insurance in the form of february puts.

    What I keep thinking is: when Monaco, Ireland and/or Iceland follow Dubai and pull a soverign default, what will that do to POG? $2,500? $5,000?

  5. Here's the problem. Volatility in gold is going to increase as we are beginning to see. TA will be less useful. Guys, we are going to see gold move up and down so violently in a single trading day it will cause heart failure. Nothing against the trade triangles but my observation is they work better in calm markets. As for the daily, it's just backward looking. Adam, do you tend to agree or disagree?

    1. Keith,

      Thank you for your feedback.

      I would tend to disagree with you Keith. I believe that technical analysis extremely useful in all kinds of markets.

      As you can see if you look on the spot gold market and look at our trade triangles. The monthly, weekly and daily Triangles were all able to catch this up move in gold.

      All the best,
      Adam

  6. I ran across a major factor today. The new rules at the COMEX allows the delivery of the ETF GLD instead of physical gold. It is in the new rules. The december delivery shows that all remaining contracts are to be delivered with GLD.

    With countries and central banks buying, and a 13 day run up it goes a long way to explain what is going on...........that the demand for delivery is WIPING OUT THE SHORTS............and the COMEX at the same time. If this is the case, expect a major explosion upward.

  7. Thanks Adam,

    While this may be another short term entry opportunity, when should a novice choose to abort and sell? What should I look for on a go-forward basis. Obviously, you'll want me to put a stop-loss in here somewhere. Any thought would be appreciated.

    Thanks again,
    Alan

  8. Last Friday and yesterday spot gold closed with doji candlesticks which means buyers and sellers are evenly matched. Today, Tuesday, there is a black candlestick with a close very much where the prior two doji's called it quits.

    Today the Ultra gold ETF named UGL managed to close with a doji while simultaneously putting in a gain of nearly 3%.

    How did it do that?

    Yesterday's close was 52.30 but overnight the ETF jumped and the open was 53.73. Today's close was 53.81. Voila! A Doji.

    What's giving gold the fits? Does it matter?

    Until the dollar shows strength (meaning some international crisis) it probably means nothing more than a pullback for gold--- if even that.

    1. Adam, it would be very helpful if you could outline where a short term (daily), medium term (weekly) or long term (monthyl) trader/ investor should place their stops when buying gold and the S&P 500 today based on the current postive green trade triangles in these markets.

      I think alot of investors are hesitant to go long a trend which is already well advanced such as gold and S&P 500, but that could go higher since established trends tend to persist. The obvious solution is to go long with the appropriate stop to reduce risk. Therefire some instruction or examples on setting the appropriate stop loss levels would be very helpful.

      1. Sean,

        Thank you for your feedback.

        Most professional traders jump on markets when they are making new highs like gold is doing now. We are in uncharted waters which means we can still go higher in my opinion.

        In regards to stops, this is an area that there is a lot of discussion on this blog. Stops a very personal and have to be utilized in that manner. I strongly recommend that you look at this blog posting I made some time ago on stops. I think it will help you.

        Here's the link: http://club.ino.com/trading/2009/06/how-to-use-money-management-stops-effectively/#more-1465

        All the best,
        Adam

  9. Adam, what do you think about filtering the daily triangle signals using a short-term moving average, such as a 9-day exponential. That could avoid being stoped on a minor retracement after a surge up, such as recently happened on GLD.

    1. Evergreen,

      I think it's a great idea. That's the cool thing with MarketClub we give you tools not only to filter trades but also to spot winning trades using our trade triangle technology.

      When it comes to GLD you should be using the monthly and weekly trade triangles. If you're using them correctly then you should still be in that trade.

      All the best,

      Adam

    1. Brand,

      We are focusing on gold. If gold continues to go higher then it will drag silver along with it. Why not trade gold where the interests is rather than looking at a thinly traded market like silver.

      Thank you for your feedback.

      Adam

  12. What does that mean ? are we gonna see the price drop down to the mentioned level ? can you please elaborate this a bit more

    I shall be greatful.

  13. Thanks Adam.

    I was this close to selling some of my holdings yesterday - glad I didn't. We hit $1,204.00 today - go-Go-GO-GOLD!!!!!!!!!!!

    1. Gold measures to move to $1,300 according to a modified interpretation of the chart per John Magee. GLD also measures to go to $130, in similar fashion.

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