26 thoughts on “Place Your Gold Stops Here ...

  1. Adam,
    Are you still bearish on the Euro? Seems like it just broke out of a descending triangle and the recent downtrend may be over.
    Would appreciate your take.

  2. I like to use the daily/hourly candles for my sell signal.
    I think the market makers like to use gap downs to take out shorts
    and buy cheap when they need to resupply their stash of stocks or ETFs
    -- especially if the think there will be more buying.

  3. Hmmm -- Stopped out on the way down to 1210 and then the bounce all the way up to 1235 (at 10:30 et) -- seems a 2% stop would have played a small loss risk against the upside momentum. No wiggle room in the rules?

  4. Adam,

    The 1222.10 stop level for spot gold would equate to what on the GLD ETF used in the Perfect Portfolio?

    1. Read 42,

      There is no way to scientifically equate what GLD would be with gold at the $1220.10 level. It is better to use Spot gold as a stop out and entry point for ETF's in my opinion.

      All the best,

  5. Not sure which systems Lynn is looking at, yet from a technical perspective, gold is poised to decline significantly until mid Sept.

    Gold price broke out of a symmetrical triangle that formed from early May until mid June & proceeded to extend above the apex of the triangle by about two-thirds of its base, which is typical, it did not reach the full extension of the base. It then declined to meet the downward extension of the triangle, which was a classic retreat after a break-out. True to form, it then reversed & made a .786 retracement rally, which should now be the beginning of the next series of moves lower. The first move might take it down to around $1100 by mid Sept.

    This pattern is recursive. It can be seen on a larger scale going back to Dec. 2009. After the decline into Sept. there will likely be a retracement rally followed by a renewed downtrend all the way into mid Dec. to meet the extension of the larger triangle that started last Dec., which should place gold at about $900 by Christmas.

    Cheers, Jack the Reaper

  6. Gotta admit I am a little mad at myself for not getting in on this gold move but I was busy collecting profits on other positions at the time. (I suppose this is a good problem to have.)

    Until now I haven't really figured the best way to get in on a position after the the trade triangle has been generated but I think I have something now.

    If panic strikes this market look for gold to come down with it just like in previous years. At a certain point hedge funds and other traders will have to sell something in order to meet their margin calls. In a deflationary environment people may be happy to sit in cash.

  7. Looking at emails and hearing analysts talk, gold will make a correctional move down before the next leg up.

  8. Adam,
    As you know I highly respect your expertise and the trading system you developed. In my guest blog on the 18th http://club.ino.com/trading/2010/08/gold-and-the-new-technical-triad/

    I did point out the possibility that we might in fact enter a correction (wave c) on this Bull Run in gold. We projected a top at 1237, which at least for now appears to be the top. It is too early to tell, but we might see a correction. The bueaty of this market is no one ever knows for sure …

    and the saga continues

  9. Hi Adam,

    I recently signed up to become a member. I was wondering where I can find the earlier alert to purchase or enter a gold trade that would show a 12 dollar profit if you get stopped out of gold at 1222.00. Still trying to find my way around your site.


  10. Placing the stop at -1% in such a volatile market seems way too tight , IMO.

    even -3 to -4 % would be safer without risking a significant loss

  11. Good Morning Adam,

    Are you advising us to move our stops higher concerning gold because you expect it might go down or go higher from here? All systems are saying up for gold so are you just protecting some profits?

    Best Reguards, Lynn

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