The Odds Are In Your Favor To Trade Gold This Quarter

Using MarketClub's weekly and daily Trade Triangles, I have found that over the last 6 1/2 years, the second quarter of the year has shown the most consistent profits in gold. These past results showed a quarterly gain on average of $7,104.83 on one futures contract.

Gold (XAUUSDO) enjoyed a nice move up earlier in the year, reaching a high of $1393.35 and has pulled back to an important Fibonacci support area. I want to watch this market very carefully and wait for the weekly Trade Triangle to turn green to get bullish on gold. That's not to say I am not longer term bullish, it only means that my timing will kick in when the weekly Trade Triangle turns into a green Trade Triangle.

Besides the Fibonacci support area, the RSI indicator is also at a very low level, similar to that of December 2013.

Trading Results

Q2 of 2008            $965.00
Q2 of 2009            $870.00
Q2 of 2010         $7,057.00
Q2 of 2011         $6,700.00
Q2 of 2012         $4,223.00
Q2 of 2013       $31,260.00
TOTAL             $42,629.00
AVE GAIN         $7,104.83

The results are based on signals using MarketClub's real time spot gold prices and margin of $8,333. This particular trading strategy and results are based on trading one futures contract, both from the long and short side. An ETF could be substituted, but I suspect the results would be quite different.

Trading Rules

How to use MarketClub's Trade Triangles to trade gold:

Use the weekly Trade Triangle to determine the major trend and initial positions. Use the daily Trade Triangles for timing purposes.

Gold entry and exit signals are generated from the spot Gold (XAUUSDO) chart.

Let me give you an example: if the last weekly Trade Triangle is GREEN, this indicates that the major trend is up for that market. You would use the initial GREEN weekly Trade Triangle as an entry point. You would then use the next RED daily Trade Triangle as an exit point. You would only reenter a long position if and when a GREEN daily Trade Triangle kicked in.

You would then use the next RED daily Trade Triangle as an exit point, provided that the GREEN weekly Trade Triangle is still in place and the trend is positive for that market. The reverse is true when you have a RED weekly Trade Triangle. You would use the initial RED weekly Trade Triangle as an entry point for a short position. You would then use the next GREEN daily Trade Triangle as an exit point.

Only Trade With Risk Capital

Even if the odds are in your favor, don't forget that there are no guarantees in trading and only funds that you can afford to lose should be used to trade with.

See you in the markets!
Adam Hewison

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Using 3X ETF's....Maybe this is now Possible

For years we have resisted using the 3X ETF's for our near term and day trading. These can potentially cut your head off over night. The main reason we have not been willing to use these tickers is that our traditional research including the resistance, support and pivot numbers just don't work.

But our friend and trading partner Chris Vermeulen is trying to convince us that he has it figured out. He has been telling us this for years but now he has created a program that....well, in all honesty looks like he was right.

Check out Chris new AlgoTrades Program

Here is his most recent trade using the ES Mini futures contract.....

On Jan 13th 2014 our algorithmic trading system took a long position in the SP500 futures trading contact. In less than 24 hours our algorithm system was able to identify resistance in the market the following session. This invisible overbought market condition which only our algorithmic trading system identified automatically sold 1/3rd of our long position for a quick $1100 profit and adjusted the protective stop to breakeven on the balance of the position.

Quick note: While this trade was executed on the ES mini futures contract using our futures trading system, we do have a 3x automated trading system for ETFs. We know the most of our followers and the general public prefer ETF trading because they understand them more and have less risk. So we built this 3x automated trading system using the 3 times leveraged exchange traded funds.

As of today (Jan 15th) we are sitting with a risk free trade, $1100 in realized gains, and another $2400 in gains on the remainder of our position. This type of trade setup has happened twice in the past 10 days. The first trade took $500 in profit and was stopped out the next day and now this trade.

Click here to read Chris' entire article and check out his chart work on this trade.



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Are the Coffee Bulls Getting the Green Light? JO JVA

Today we are going to take a look at the technical picture for the March Coffee contract NYBOT:KC.H14.E

We'll be analyzing the current coffee chart using the MarketClub Trade Triangle technology. Full disclosure, we are long coffee using the ETF JO.

With futures we use the weekly MarketClub Trade Triangles to tell us the trend and the daily MarketClub Trade Triangles for timing the entry and exits to the trade.

Coffee made a base, has made a breakout of the base to the upside and a test of the base, which means a bottom is probably in for Coffee.

When ever the weekly MarketClub Trade Triangle is green, then you can use daily green Trade Triangles as entry signals to go long in the market.

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