One of my all-time favorite songs is from the Kenny Rogers album, "The Gambler" and every investor can learn something from the song's lyrics.
"If you're gonna play the game, boy, ya gotta learn to play it right. You got to know when to hold 'em, know when to fold 'em, Know when to walk away and know when to run. You never count your money when you're sittin' at the table. There'll be time enough for countin' when the dealin's done."
Here we are 34 years later and the words to that song are every bit as relevant as when they were written. When stocks go up, "you got to know when to hold 'em", and when stocks go south you have to "know when to fold 'em." The words to the song are very simple, but they are, in fact, the essence to successful trading. Continue reading "5 Stocks To Exit Immediately!"→
Gold (FOREX:XAUUSDO) has been so much out of favor over the last couple of years that it seems like no one is really looking or talking about this market anymore.
I was looking through a bunch of charts last night and I found some interesting technical aspects to gold that I would like to share with you today. Looking at the chart below, we can easily see the Fibonacci correction in gold. The gold market retraced back to an area of natural Fibonacci support, which is between the $1,170 and $1,308 levels. This represents major 61.8% and 50% Fibonacci retracements on the chart.
The gold market also found support in a long-term trend line, which started in 2005. This is extremely important in my view as the trend line is in an upward trajectory. We would need to see gold move into some sort of consolidation pattern before we would see a reversal to the upside in this market.
At the moment, all of our Trade Triangles are negative and I do not recommend going against these indicators. As you can see by the trading results, just by following the Weekly Trade Triangles, you do so at your own peril.
One of the hardest things for most investors and traders to do is to buy something that's been going down for a long time, investors are just not mentally prepared to do that. The purpose of today's posting is to mentally prepare you to start thinking about gold and putting gold on your radar screen for a future move. When it begins, I believe we could see a significant upside rally in this metal.
So let's wrap up with the positives and negatives for gold. Starting with the potential positives, the Fibonacci numbers and the long-term trend line from 2005 all support the long-term upward trend in gold. On the negative side, all of our Trade Triangles are red, indicating that the trend is still down.
Ideally what I would like to see in gold is a combination of the market moving out of its support area and our long and intermediate term Trade Triangles turning green and positive.
Have a great trading day. Adam Hewison