The move down in gold yesterday surprised many traders and flashed an exit signal based on MarketClub's daily "Trade Triangle" technology. As we have mentioned before, we felt that gold was in a broad trading range and were not optimistic that it would shoot higher.
Tag: gold video
Let's Make Some Sense of Today's Gold Market
It's been about eight days since we did a video on gold, and given the market action today I thought I would look at what is causing the downward pressure in this market.
If you did not watch my last video on gold, I strongly recommend you click here to watch the video titled "Five Reasons Why Gold Will Not Make a New High This Time" as it will give you a bigger picture of how we see this market playing out in the next 12 months.
In today's short video we look at an indicator that we have not talked about before in any of our videos. The indicator, which is an overlay on top of the chart, is called the Donchian Channel Indicator. Continue reading "Let's Make Some Sense of Today's Gold Market"
Five Reasons Why Gold Will Not Make A New High This Time
Gold has made some exciting moves recently, but what can we expect in the future? In today’s video, I point out five reasons that I do not expect gold to make a new high just yet.
If the current cycle persists, there will be some interesting trades to be had in this market and a possible new high before summer.
The video is free to watch and there are no registration requirements. I hope you enjoy this gold update and make a comment on the blog about how you feel about this video and this market.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Why Today's Market Action is Important
No question about it, today's market action caught many people by surprise, but it's important to understand what happened and why it happened from a technical standpoint.
As many of you who have been following my videos already know, MarketClub's “Trade Triangle” technology has been neutral on the indexes since January 20. We have also been bearish on gold since the 22nd of January. So what is happening to the markets?
The recovery in the indexes from March of '09 was basically just that, a recovery. Our Fibonacci retracement indicator was spot-on and points to a potentially more negative down move in the future. All of the indices managed to recover back over 50% of the gains before this recent downturn.
Today, I want to share some significant levels to look for during the balance of February. If these levels are broken and taken out, it would indicate a much more serious problem for the equity markets.
Here are the levels on the indices: S&P 500 key level to watch 1,029.38, NASDAQ key level to watch 2,024.27, and Dow Jones at 9,678.95.
In the case of spot gold, the key level to watch this month is 1,044.20. If the gold market goes below that level, it will signify further retrenchment for this precious metal.
Make no mistake about it, today's action is not positive for the equity markets. However, providing the levels we mentioned above hold, then you could say we're in a broad trading range and we expect the lows to be tested. I, for one, am cynical that this is going to happen.
You may also want to take a look at my recent gold and crude oil videos. Cyclically these markets are right on target and acting the way we expected them to act.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The Psychology of Commodity Price Movement
The price of a futures contract is the result of a decision on the part of both a buyer and a seller. The buyer believes prices will go higher; the seller feels prices will decline. These decisions are represented by a trade at an exact price.
Once the buyer and seller make their trade, their influence in the market is spent — except for the opposite reaction they will ultimately have when they close the trade. Thus, there are two aspects to every trade: 1) each trade must ultimately have an opposite reaction on the market, and 2) the trade will influence other traders. Continue reading "The Psychology of Commodity Price Movement"
