Another war and then another war and then... what is this Groundhog Day?

If you haven't heard the latest news about North Korea attacking and making aggressive moves towards Yeonpyeonga, a small South Korean island, you missed what moved the gold market today.

South Korea scrambled fighter jets and returned artillery fire after North Korea provoked the peninsula’s most serious confrontation in decades.

What you probably did not know was the $20 move up in gold today was signaled the day before by our "Trade Triangles." How was this possible? It has everything to do with some very cool technology developed by MarketClub.

Yesterday, MarketClub through its "Trade Triangle" technology flashed a buy signal in gold. This was 24 hours before today's big up move! How could it be possible that a technology could know what was going to happen before it happens?

If you would like to learn how this was possible and learn more about how this technology can work for you, you need to register for MarketClub's free gold webinar on 2 December at 4 PM EST. The webinar is open to all on a first-come first serve basis. We recommend that you register today as we are only opening the doors to a limited number of attendees.

What you'll learn at this educational gold webinar are several key rules for trading in this precious metal. Plus, you will learn one trading technique that can make a huge difference to your future and your bottom line.

Register here
.

All the best,
The MarketClub Team

18 thoughts on “Another war and then another war and then... what is this Groundhog Day?

  1. I suggest peope stick to using measureable technical indicators (such as Adam's Trade Triangles) for timing trades (especially with gold) and measureable fundamentals (such as dividends, P/E ratios and earnings changes, etc.) for stock selection according to investor needs rather than using the nefarious news reports. For example, some investors may need steady income so they would prefer dividend paying stocks to non-paying stocks.

    I'm sort of amused by the repetition of fundamental myths about why prices go up instead of down. Some people like to believe that the "news makes prices go up or down" or that "the reaction of buyers and sellers to the news makes the prices go up or down." But predicting the news is really tough and pinning its effect on prices seems even tougher. So is the news really helpful?

    Another fun myth is that "prices went up because there were more buyers than sellers." Of course this conclusion is absurd since it implies that the buyers are the ones buying smaller lots and the sellers are selling larger lots because the total number of lots (units or shares) bought and sold in every trade is always equal.

    If I place an order to sell 100 shares at the market, then it could be matched with multiple buy orders unless I stipulate to sell all or none. The same thing can happen with buy orders. Thus how do we know if there were more buyers than sellers or vice versa?

    I suppose when people say there were more buyers than sellers they might mean that there was more buying pressure (bids were generally rising) than selling pressure (offering prices were not generally falling). But at every trade that takes place both supply and demand are in momentary balance (until the price changes to determine the next trade). Thus all of these simplistic observations about price (including mine) have either dubious or no value in making money by buying or selling equities. If we had a super computer that tracked every trade in real-time (which of course is a fantasy since there is always some data time delay) then the computer could place the buy and sell orders according to some super algoritm and optimize profits (and we could sell the computer and program to the biggest traders for a princely sum).

    I conclude that we should stick to methods that we can afford both our time and money to use and that have consistently worked in the distant and recent past.

    I'd like to know what Adam has to say about the placement of protective stops. Does the Trade Triangle methodology have them or not?

  2. Perhaps the war economy has patterns & PA all its own??

    North Korea would be a major step up in volume.

    USD trend change??

  3. I think we may still not catch the point. The thing is we are not investing in gold. We are actually investing in our believe that human nature is of greed and fear, and will be so in future as well. Also, don't explain the market unless just for fun. Let the future be the future. Well, just my personal thinking!

  4. Gold Webinar is listed on this page as taking place on Dec 8. Sign up page lists it as Dec 2. Please confirm, Which is it?

  5. Its easy to find ex-post facto reasons for any move in anything.

    The reason golds price went up is simply because more people bought it than sold it.

    I think you would agree that if you polled *all* the traders who traded gold yesterday they would all not agree on Korea being the reason for their purchase. Some of those who bought may say it was due to the unrest, sure. I believe you would find avast collection of responses. What about those who SOLD? You logic would also suggest they removed their positions due to the same unrest. The fact of the matter is that NOBODY knows.

    1. Erik,

      Thank you for your feedback.

      Yes, you are correct prices go up because there are more buyers than sellers, conversely when prices go down there are more sellers than buyers. The point I was making with our Trade Triangle technology was the fact that the buy signal for gold was given the day before and not on the day the market went up. On that day buyers and sellers were pretty much in alignment.

      All the best to you,
      Adam

    1. Peter,

      Thank you for your feedback and your business.

      We did not issue a buy alert on gold simply because there were lots of things going on. What we recommend for users is to look at our World Cup Portfolio as we show you the exact buy points that we're looking at. When you login in to Marketclub you will see on the left-hand side the World Cup portfolio. Click on that and you will see all the signals for gold before they happen.

      All the best I to you,

      Adam

  6. I think one should say, if you trade according to the system and be consistent for a long period say five years for that chosen market by you, you can be sure to earn some money. But simulation on some five-ten years of data is a must to see if the system fits along with the character of that market before you even start the first trade.

    1. Tsai,

      That is a very good point.

      The good news is you can do that quite easily with market club As our equity data goes back close to 10 years now. All you need to do is use the strategy we recommend for stocks. Here it is if you haven't seen it before.

      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.

      All the best,

      Adam

  7. Volume off the top,bearish engulfing,negative divergence in MACD,USD heading higher with some steam,not too mention possible head & shoulder pattern settin up.I'm out, time for some patience and let this pattern play its self out.

  8. Uh... do you think the move today would have anything to do with options expiring? Maybe? Keep an eye on expirations, Stochastics and MACD.

  9. Pete's right. Your buy signal had nothing to do with the Korean conflict and I suspect had much more to do with the recent sell off of gold and the bailout of Ireland - nothing more.

  10. I do not doubt your trade triangle system produced a buy signal for Gold yesterday.
    But frankly unless North Korea "leaked" its intentions to a bunch of Gold bugs it appears to me
    to be purely a unrelated coincidence.

    Yes, your program "detected" the fear in the market. Inflation, debt fear. Not war fear.

    Pete

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