While the gold bugs argue that the market is being manipulated, we are more realistic and respect what the market is actually doing. The big question on everyone's mind is: Why are food prices and other commodity markets soaring, while gold is dismally staying down in the $1,330 area?
MarketClub's Trade Triangles are all Red, meaning that the trend for gold is likely to remain negative or at best move in a sideways fashion. Our best estimation at this point in time is that we are going to see more sideways action and probably some recovery from current levels. However, we would like to see some concrete evidence that the market has actually put in a low and that we will see a recovery in this yellow metal in the future.
Although historically our monthly RED Trade Triangles have not been successful in gold. You would have been more successful fading the RED monthly Trade Triangle signal and going long gold.
Before getting, "gung ho" on this approach, you will be better off waiting for a green weekly trade triangle to kick in which would indicate that the market has probably made a low. That is the main reason why, we recommend using the weekly Trade Triangles for trend, and daily Trade Triangle's for timing.
In this short video, we explain what we mean and show you concrete examples of how you can use this strategy to make money. As always our videos are free to watch and there is no registration requirements. Our only request is that you tell your friends, Tweet and Facebook about this article and the video. We would also enjoy hearing from you, so please feel free to leave a comment and tell us where you think gold is headed.
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