What happened to the gold market?

I think it came as a big surprise to many traders that the gold market imploded on Tuesday pushing to its lowest levels in several days.

The downward spiral was enough to trigger a daily "Trade Triangle" which moved us into the neutral camp on this market. Exiting our long gold position based on our "Trade Triangle" signals produced a very small profit or in some cases of break even trade.

So the question is: Is the sharp downward move in gold over?

In my new video I answer that question and share with you some levels I think gold will go to on the downside. I also share with you that we could be setting up for it excellent buying opportunity, if and when our "Trade Triangles" are aligned.

If you have a few minutes I strongly recommend that you take the time to watch this gold video.

You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on the MarketClub Trader's blog.

All the best,

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

17 thoughts on “What happened to the gold market?

  1. Waves say 903 won't hold and we are in the start of a third wave down with a 680 target. Expect a rebound to 940 and then sharp and quick selloff below 903. Watch those triangles carefully. Do NOT, under any circumstances, ignore a signal and get caught on the wrong side of a major move! This market is poised for violent movement so disciplined trading and money management are critical.
    Depression still stalking us as the continuing credit contraction will continue to feed deflation. Sell your gold now and buy it back at much lower prices.

  2. Hi Adam

    Watching your video again, I notice the monthly trade triangle is LONG at 929. How does the monthly trade triangle fold into your system's picture -- a further confirmation of trend? Aside from trade triangles, do you think a close at a new monthly high (940+ in this case) would be significant as does the analyst I linked to above?

    Thanks, Jim

    1. Jim,

      It's a very good observation. The monthly triangles are important and they do signify that the longer-term trend in gold is still intact. We have members who use the monthly triangles to filter their trades as well as use them just to trade the market based on those signals. There are a lot less signals however you can take one large losses when you expand the time frame of the triangles.

      I remain positive on the market.

      All the best,

  3. Adam,

    You point out in your video that you expect the head and shoulders pattern to carry prices to higher levels. I have heard countless other commentators saying the same thing. There is one little problem with the pattern, head and shoulders occur as top or bottom features. You increase into a bearish head and shoulders or you decrease into a bullish head and shoulders. You cannot increase into a bullish head and shoulders. What you are seeing however are lower highs and very soon lower lows.


    1. Jim,

      Some comments are removed simply because they're either obscene or not appropriate. We do post I would say about 99.9% of all comments.


  4. Here's an interesting commentary about the significance of the 940 level:

    The chart above is a monthly close chart. I choose it to emphasize that the highest monthly closing ever in gold has NEVER BEEN ABOVE 940. Write that down on a piece of paper, stick it on your desk, your computer, your forehead if you have to but make sure you keep that in mind. And the reason is simple. ANYTIME we are above the 940 area in gold, the chances of EXPLODING to the upside and/or a new rally leg beginning is greatly enhanced.


    I'd been wondering up in the 950's if (more like 'when') the PTBs would begin painting a monthly close below that level.


  5. What happened to the gold market? The dollar is setting up for a counter trend rally.

  6. I frequently have a problem when I access your video comments, such as the current one 'What Happened to Gold'. The video loads only to the half way point and therefore I see only half.. Am I doing something wrong?

    1. Bill,

      Try watching the video on a different browser. If you are attempting to watch on IE, switch over to Firefox or Safari and see if that's the issue. If you do not current have another browser installed, try click the video feed a little past the point where it is getting stuck. You can also watch the video below, unfortunately with lower quality.


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

      PS - If you have future issues please don't hesitate to contact our Support Team at 1.800.538.7424.

  7. Hi Adam,

    Gold seems to be one of the the most difficult of all markets. This appears to be true with the trade triangles record on gold as well. Perhaps it is the range trading you highlighted in the video. But either way the market seems prone to large unexpected moves that defy typical trading patterns. Who knows, perhaps the conspiracy theorists are correct. Ther are some highly credible and accomplished people who subscribe to that view. If true, it seems unlikley we will see the price of gold above $1,000 on a sustained basis anytime soon.

    A related issue is getting out of the market at or near the MC triangles. This is very difficult to do without knowing the price at which the trade signal is likely to reverse in advance so that stops can be set there. Is there any way of getting access to the anticipated exit price before rather than after the fact?

    Best wishes,

    Patrick Keith

    1. Patrick,

      Thank you for your feedback. To answer your question is very easy to figure out entry points and exit points in the gold market. All you have to do is look at the preceding three days high and low. If you are long gold bullion look at the preceding three days low and that is to stop out point. The reverse is true if you are short gold look at the preceding three days high if the market moves over that level you will be stopped out.

      Sounds simple, it is.

      All the best,

      1. Hi Adam,

        I was referring to tne need to know in advance where the Trade Triangle ("TT") signal will reverse.

        With that information it is logical to set the stop at the point where the TT signal reverses.

        If one is unable to exit when the TT signal reverse, one is unable to duplicate the MC results - the MC model gets out but the MC client does not.

        This is particularly true when there is a larger intraday move.

        Patrick Keith

  8. The market is in recovery, reported earnings show that there is no need for gold as a safe haven. Altho it has also been pointed out that the reported values are not to be trusted.



    Misrepresentation in corporate earnings statements is rife; according to S&P, of the 197 S&P 500 companies to report this quarter, only a quarter have actually earned the number reported in the headlines. Fully 63.5% stuffed "one-off" or "extraordinary" items in their income statements, while only 24 of the 197 had reported earnings that were higher than headline operating earnings.


    Fleckenstein takes an honest look at the earnings ...

    Companies would rather play 'beat the number' than come clean about how they're actually doing. Don't get sucked in. Play 'the price is right' instead.


    I'll be stocking up on CEF as the gold price dips.

  9. Adam,

    I missed getting out at $947. I didn't receive the Daily Trade Triangle email alert until 8:42 pm PST, and by that time the email alert was reporting the $939 closing price. Is there any way you can change the alerts so they are distributed within the specified 10 minutes? This is not an isolated incident and would be happy to discuss further if more information would be helpful.


    1. Jonathan,

      We are working diligently to upgrade our alert system. Rest assured you will see some changes in this program if you haven't done so already.

      All the best,


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