This will be short and brief.  Here is a quick video (from Adam Hewison) which analyzes the current state of gold…

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Cheers,

Cory Mitchell, CMT

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The bull market inched higher during Sunday night trading, subsequently pushing gold to its best levels since December of last year. The sudden move down on Monday was a reminder that the 1160 area is an area of resistance for this precious metal.

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In this new video on gold, I’ll show you some of the indicators that you may want to look at in this market.

As always, our videos are free to watch and there are no registration requirements, but we invite you to please share your thoughts on gold on our Traders Blog:
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All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

This article and accompanying video comes from Adam Hewison.  Read, watch, enjoy and feel free to leave a comment.

Gold has had some dramatic moves in the last eighteen months and we expect it will have some equally dramatic moves in the future, but not right now.

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While I recognize that gold is one of the few commodity markets that people are really passionate about; the purpose of this article is not to take sides either with the gold bugs or those who reject the argument that gold is forever.  Rather, I want to discuss my interpretation of the markets cycle.

After spot gold made an all-time high against the dollar on December 2 at $1,226.37, gold has been in retreat mode. For the for the past several months gold has been in a broad trading range, seemingly unable to move one way or another. This process has created frustration from bulls and bears alike.

Here is the dirty little secret about the gold market. It can be a horrible investment and here’s why:

Gold first started trading in the 80s while I was on the floor of the Chicago Mercantile Exchange in Chicago as a member of the International Monetary Market, (IMM) which was at that time a division of the CME now the CME Group.  When gold opened up the public clamored to buy into the gold futures market and guess who sold it to them? Thats right it was the pros- the guys who made their living trading. As a result, gold hit an all-time high of around $850 an ounce back then and it took almost 25 years for gold to move over that level, at least in dollar terms. I dont know what your timeline is, but 25 to 30 years is an awful long time to get even again.

So what is really happening in this market?

Everyone is aware of the problems in Europe with Greece, Portugal and a host of yet to be named countries. We all know that the huge amount of money being printed, coupled with the bank failures abroad contribute to the dollars declining value. These events, in conjunction with the American governments actions, also contribute to the devaluation of the dollar. The government claims that this is beneficial to exports, but the bottom line is that the purchasing power of the American dollar continues to erode in world markets.

Based on the declining value of world currency against gold you might ask- why isnt gold trading at $2,000 or even $3,000 an ounce? What is wrong with this market? This is because a great deal of what goes into the gold market is psychological and reacts to cyclic trends driven by both psychological and economic factors.

So what does all this have to do with the price of gold now? It has everything to do with gold and nothing to do with gold.

Here is what I’ve been able to observe in the last several years in gold and seems to be holding true.  It is something that you should pay attention to if you’re interested in the next big move in the gold market.

Before gold can move higher it needs to create what I call an “energy field”.  The most recent energy fields in gold were between May 12, 2006 and September 20, 2007. This 17 month energy field saw gold prices oscillate between a broad trading range bound by $730.08 (upside) and $541.80 (downside).  That energy field produced enough power to propel gold to the new high of $1,012.40 on March 17, 2008. This marked the first time gold exceeded, in dollar terms, the highs set in the early 80s mentioned earlier.

The energy fields I have observed for gold are taking somewhere between 17 and 18 months to complete. If the energy field holds, then the December 3rd 2009 high of $1,226.37 should remain in place for quite some time. If the same cycle remains true then the recent lows that we witnessed, at $1,050, should also remain intact as they represent the 15 to 16 month cycle low.

With the lows in place the next question becomes when is the next cyclical high in gold? Based on the existing cycle, we can expect the next major gold high in 2011.

To summarize: I expect gold to be locked in a broad trading range for the next 12 months bounded by the December 09 highs of 1,226.37 and the lows of $1,050.00. If the gold cycle holds true, we expect that gold tops the $1,226.37 marker by April or May of 2011.

On the on the upside we will also be looking for gold to make a nature cyclic high in October or November of 2011. It’s impossible to predict the future with any degree of accuracy; however when we look at the cycles in gold this reads as a pretty good bet.

No matter what happens we expect gold will offer some great trading opportunities that investors and traders should be able to take advantage of.

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As I always discuss- in trading one should approach gold or any other market with a game plan and proper money management stops. The key to success in this decade will be an investors willingness to move in and out of asset classes such as gold and be well diversified into more than one asset class. That way you wont be left holding the bag for the next 25 years. Our World Commodity Portfolio is a good example of this approach and one I believe will serve investors well in the coming years.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

Adam Hewison takes a 2 minute look at the gold market in this video and gives you a level to watch for.  The video was recorded on Sunday but is still very relevant as it is the weekly chart which is analyzed.  In the video Adam mentions “engulfing” patterns.  Of the candlestick patterns, this is one of my favorite especially when seen in certain cycles or at support and resistance.

If you are invested in gold, trading gold or considering what to do with gold then be sure to check out this very quick free gold analysis video.

http://www.ino.com/info/536/CD3784/&dp=0&l=0&campaignid=3

Cheers,

Cory Mitchell, CMT

This was actually posted by Adam yesterday, so I am a little late in getting it to you, but it is still a valuable look at the current state of Gold.

Cheers,

Cory Mitchell, CMT

The move down in gold yesterday surprised many traders and flashed an exit signal based on MarketClub’s daily “Trade Triangle” technology. As we have mentioned before, we felt that gold was in a broad trading range and were not optimistic that it would shoot higher.

The action yesterday confirms that we have more of a two-way market. I expect we’ll see further selling on any rallies from this level.

In today’s video, I share with you some thoughts I have on gold based on one important element: how gold energy fields propel this market.

http://www.ino.com/info/533/CD3784/&dp=0&l=0&campaignid=3

All the best,

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

Gold closed in on 1100 today, accelerating to the upside.  This video takes a look at where gold has been, where a particular strategy would have provided entries and exits and of course where gold is expected to go.  As always the video is informative and educational.

Keep in mind that for those who do not trade commodities, Gold can be traded in alternative ways such as through a Gold ETF like GLD.  That means being informed about Gold can provide opportunities to all traders, and not just commodity traders. Stock traders can use the information to trade the Gold related ETFs (exchange traded funds), forex traders can use the data due to the relationship between Gold and the US dollar, and commodity traders can use it to trade the commodity itself.  Here is the video:

Gold Separates and Accelerates

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Enjoy,

Cory Mitchell, CMT

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In today’s video we’ll be looking at gold.

After a spectacular run-up in gold values in the last decade, gold prices have slowed down and have entered into a broad trading a range. In today’s video I will be looking at what are the likely scenarios that come out of this 14 month trading range.

This week (starting 7/20) could be enormously important for the yellow metal as a key level is within striking distance which will kick this market into action. In this video I give you a specific level that I am watching personally in this market.

http://www.ino.com/info/406/CD3784/&dp=0&l=0&campaignid=3

All the best,

Cory Mitchell, CMT
Chief Market Strategist

P.S.   WANT MORE?    How about 4 free online seminars:

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