Where gold is headed in the next 6 months

Posted on by The INO.com Team

We are the government, we're here to help.

I believe the only help the government gave us last week was pushing gold prices higher. During last week's massive bailout and intervention in the credit markets one of the few markets to close higher for the week was gold. This tells you a tremendous amount about how traders are thinking about the future.

Watch my new gold video here.

These are extraordinary times we are living in, and we have to take advantage of what the markets are offering us at the moment. The fact that there was no follow-through today in the equity markets tells me that there's so many questions about this bailout that are yet to be ironed out. That in turn creates more uneasiness in the marketplace.

I still believe that stocks are in a bear market and that we can see a trade down to the 10,000 level basis the DOW. Having said that, I would be trading gold from the long side until our "Trade Triangle" Technology points to a change in trend direction. With the technicals all in place, and the fundamentals certainly pointing to higher gold prices, I think traders should be looking at this market from the long side. Some of our cyclic work indicates that gold could be strong until February or March of 2009.

Enjoy the video. It's short and it's available now with our compliments.

Every success trading,

Adam Hewison
President, INO.com
Co Creator, MarketClub.com

9 thoughts on “Where gold is headed in the next 6 months”

  2. I have studied P & F charting with Tom Dorsey but although the system seems so obvious and simple, it is not. As in your previous message about gold you were SHORT. The market turned aggressively in the opposite direction (north) and gave on P & F chart only at 890 (low pole reversal) a weak buy signal, which was 100 $ higher level. So you had a very negative trade. Also this you should point out now to your readers. Reagrds Joseph

  3. My family has gold and silver that my father collected in the 30s through 70s. Where do we go to get fair value estimates? We are not in any hurry to sell, but perhaps are interested.

    What about silver?

    a

    ---
    Hi Ann,

    If you want to get a fair market value you could use the spot prices for gold and silver. As for a site that will give you a good estimate... I'm not quite sure. You can at least use the spot prices to give you a good idea of how much your collection is worth.

    Gold:http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&t=f
    Silver:http://quotes.ino.com/chart/?s=FOREX_XAGUSDO

    Let me know if you have any other questions.

    Best,

    Lindsay Thompson
    Director of New Business Development
    INO.com & MarketClub

  4. We're seeing the start of government management of the financial markets. The first victim will likely be commodities as our clueless Congress writes provisions into the bailout legislation that will "protect main street" from evil speculators. If this comes to pass, how can we rely on the old rules of trading? Will the markets move elsewhere?

  5. These are indeed unusual times when you see gold surging by one of the largest ever daily moves last week, and yesterday crude oil shooting up towards $120.

    Gold was up so presumably because the markets were panicking over what the monetary authorities were going to do about the systemic financial collapse.

    As for crude, it seems to have risen because the markets assume that will all these billions from the rescue package flooding the financial system, we are going to see a recovery, and so a higher demand for crude oil and its distillates.

    There maybe inflationary implications for this increase in the money supply, and so gold would be expected to rise.

  6. Dear Adam,
    I think I read in one of your comments on gold implying that gold did not hit high(of $ 2000) as predicted by others. Now you are expressing bullish view, which is 180 degrees turn around!
    Also, in this video, I fail to catch your reasoning for bullish view.

    Thanks for your feedback.
    We move with the market and time our trades using Marketclub's Trade Triangle Technology. http://marketclub.com Thanks Adam.

  7. hi adam...

    i want 2 know wht abt the monthly n quartly trade triangle...r we suppose 2 ingore them???

    thank you

    We trade gold on the daily and weekly triangles, both of which are bullish right now. The monthly and quarterly remain in a negative mode. I would only become aggressive in buying gold when both of these signals are in sync.

    Adam

  8. hi adam...

    i want 2 know what about the monthly n quarterly trade triangle...r we suppose 2 ignore them???n i would like it if u can speak about the euro n gbp...its been long b4 u haven't spoken something about them...

    thank you

    ---
    Dear BHavin,

    I think the explanation below will better clarify when to use the monthly, weekly and daily "Trade Triangles." Also I will pass on your video ideas for GBP and EUR. Thanks for the comment.

    Equities

    http://broadcast.ino.com/lessons/methodequities/ - click to see video

    Monthly Triangles determine trend and possible entry points.

    Weekly Triangles determine timing : exits, entries and re-entries.

    The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possibly exit and reentry points, or entry points if your monthly is in a steady trend.

    Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.

    *If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry point and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.

    Futures & Forex

    http://broadcast.ino.com/lessons/methodfutures/ - click to see video

    Weekly Triangles determine trend and possible entry points.

    Daily Triangles determine timing : exits, entries and re-entries.

    The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possibly exit and reentry points, or entry points if your weekly is in a steady trend.

    Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.

    ---

    Best,

    Lindsay Thompson
    Director of New Business Development
    INO.com & MarketClub

  9. Hi Adam,
    Thanks for your valuable advice- it was very clear, short and precise to the point.
    Hope to hear more from you soon.

    Best regards,
    Jason

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