To many it is quite surprising that gold is getting closer to $700 an ounce rather than the $2,000 many were calling for. When gold was trading at the $1,000 level many people were expecting this market to zoom to $2,000 an ounce.
When we first suggested that gold had actually given us a sell signal we received numerous e-mails, many of which were not flattering and some were just downright ugly. "How could you short gold are you an imbecile" and that was one of the nicer emails.
Emails aside, to trade successfully in any market you must listen to the market. This is the one true voice that tells you what is going on.
During my career in the commodity markets, I have heard many stories, some of which were fabricated and some of which are true, but either have little or no bearing on the market itself. The very best indicator of all is to follow the price action which tells you when the insiders are selling or buying. In the commodity markets you have insiders who actually produce a commodity or the actual end-user of that commodity. Everything else is speculation. These insiders have extensive networks of global information that they plug-in to their hedging models. They also have extensive experiences and know what it's like to be in the trading trenches of any market.
Take a few minutes and look at the short video I just produced to show you exactly what I mean and how the patterns are different this time in gold and why it may have still further to fall.
Every success in the markets and in life,
Co-Creator of MarketClub.com
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