Video: The Gold Meltdown – What Happened?

This entry was posted by Monday, 15 April, 2013
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Video: The Gold Meltdown – What Happened?

In today’s Trade School video, we’re going to be looking into what caused the recent meltdown in gold prices. How could gold drop so precipitously in such a short time, given what’s going on in the world? Did it have anything to do with the ETF GLD or was a country forced to sell its precious metals to satisfy creditors?

I will share with you how you could have systematically made money in gold using our Trade Triangle technology, which has produced some very positive results over the years.

Since 1975, there have been 13 bear markets with an average drop around 14%. This would put gold below the $1,300 level, around $1,280.

In this short 4 minute video on gold, I will illustrate the importance of having a solid game plan and a market-proven approach. We will go through each trade in gold and share with you the results of using our Trade Triangle approach from the beginning of the year.

This approach is not for everyone, but we think you will agree that the results certainly speak for themselves.

For more information on the tools I use in this video visit this link.

Adam Hewison
Co-Creator, MarketClub

Gold Loses Its Shine for Long Term Investors

This entry was posted by Saturday, 13 April, 2013
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My last update on Gold reaffirmed my long term bearish position following the expected mini rally. Bulls failed to take out the key level at 1626 on that rally and it was enough for me to take profits and reverse my position to short again as the shorter term cycles rolled over and the larger down trend resumed.

This was a long term call and I expected a break down through 1585 to trigger a swift decline to 1550 and then on to test the long term support with the expectation that it would also break. As we can see in the updated chart, Fridays break lower has given a clear and decisive break so lets take a look at the chart and what we can expect to happen now?…

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Gold Elliott Wave Analysis Turns Bearish Again

This entry was posted by Monday, 25 March, 2013

The signals were there and we were correct to close out our short positions in Gold with a decent profit and there was even a healthy profit in it for nimble traders who reversed their positions to go long as Gold went on to break resistance at 1585. This targeted a quick short term move to 1600 and then the previous high where it found resistance again before falling back again this morning…

Gold Elliott Wave Analysis Daily Chart

Gold Turns Bearish Again

The failure to break the previous high reaffirms the long term bearish elliott wave analysis and bears now have another opportunity to regain control and take Gold down through the strong support levels offered by the long term channel trend line and previous support….

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S&P 500 Moving Averages Magic – Updated

This entry was posted by Saturday, 27 October, 2012
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S&P 500 Moving Averages Magic

Following the break out move earlier this year the S&P 500 is now testing the moving average that will give us the next long term sell signal.

We already know through our JM Hurst Cycles analysis that the long term cycles are running out of time. Will it break this week so close to the US elections?  We discuss the possibility in Kennys Elliott Wave Analysis Premium Forum this weekend but either way, it surely is just a matter of time now.

You can find more free charts including the Hurst cycles analysis chart in my Kennys Elliott Waves at Stockcharts pages.

S&P500 Moving Averages MagicS&P 500 Moving Averages Magic

Fibonacci in Nature: The Golden Ratio and the Golden Spiral

This entry was posted by Thursday, 11 October, 2012
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Fibonacci in Nature: The Golden Ratio and the Golden Spiral

The more you learn about Fibonacci, the more amazed you will be at its importance 
October 10, 2012

By Elliott Wave International

If you’ve studied the financial markets, even for a short time, you’ve probably heard the term “Fibonacci numbers.” The ratios and relationships derived from this mathematical sequence are applied to the markets to help determine targets and retracement levels.

Did you know that Fibonacci numbers are found in nature as well? In fact, we can see examples of the Fibonacci sequence all around us, from the ebb and flow of ocean tides to the shape of a seashell. Even our human bodies are examples of Fibonacci. Read more about the fascinating phenomenon of Fibonacci in nature.

Let’s start with a refresher on Fibonacci numbers. If we start at 0 and then go to the next whole integer number, which is 1, and add 0 to 1, that gives us the second 1. If we then take that number 1 and add it again to the previous number, which is of course 1, we have 1 plus 1 equals 2. If we add 2 to its previous number of 1, then 1 plus 2 gives us 3, and so on. 2 plus 3 gives us 5, and we can do this all the way to infinity. This series of numbers, and the way we arrive at these numbers, is called the Fibonacci sequence. We refer to a series of numbers derived this way as Fibonacci numbers.

We can go back to the beginning and divide one number by its adjacent number – so 1/1 is 1.0, 1/2 is .5, 23 is .667, and so on. If we keep doing that all the way to infinity, that ratio approaches the number .618. This is called the Golden Ratio, represented by the Greek letter phi(pronounced “fie”). It is an irrational number, which means that it cannot be represented by a fraction of whole integers. The inverse of .618 is 1.618. So, in other words, if we carry the series forward and take the inverse of each of these numbers, that ratio also approaches 1.618. The Golden Ratio, .618, is the only number that will also be equal to its inverse when added to 1. So, in other words, 1 plus .618 is 1.618, and the inverse of .618 is also 1.618.

This is a diagram of the Golden Spiral. The Golden Spiral is a type of logarithmic spiral that is made up of a number of Fibonacci relationships, or more specifically, a number of Golden Ratios. For example, if we take a specific arc and divide it by its diameter, that will also give us the Golden Ratio 1.618. We can take, for example, arc WY and divide it by its diameter of WY. That produces the multiple 1.618. Certain arcs are also related by the ratio of 1.618. If we take the arc XY and divide that by arc WX, we get 1.618. If we take radius 1 (r1), compare it with the next radius of an arc that’s at a 90° angle with r1, which is r2, and divide r2 by r1, we also get 1.618.

Now here are some pictures of this Golden Spiral in various aspects of nature. For example, on the left is a whirlpool that displays the Golden Spiral and, therefore, these Fibonacci mathematical properties. We also see the Golden Spiral in the formation of hurricanes (center) and in the chambered nautilus shell (right), which also happens to be a common background that Elliott Wave International uses for a number of its presentations and graphics.

We can also see the Golden Ratio in the DNA molecule. Research has shown that if you look at the height of the DNA molecule relative to its length, it is in the proportion of .618:1. If we look at the components of the DNA molecule, there is a major groove in the left section and a minor groove in the right section. The major groove is equal to .618 of the entire length of the DNA molecule, and the minor groove is equal to .382 of the entire length.

This graphic of the human body also shows how the Golden Ratio exists in certain relationships of the human anatomy.

Learn How You Can Use Fibonacci to Improve Your Trading

If you’d like to learn more about Fibonacci and how to apply it to your trading strategy, download the entire 14-page free eBook, How You Can Use Fibonacci to Improve Your Trading.

EWI Senior Tutorial Instructor Wayne Gorman explains:

  • The Golden Spiral, the Golden Ratio, and the Golden Section
  • How to use Fibonacci Ratios/Multiples in forecasting
  • How to identify market targets and turning points in the markets you trade
  • And more!

See how easy it is to use Fibonacci in your trading. Download your free eBook today >>

S&P 500 Elliott Wave Analysis: Possible Major Reversal Day

This entry was posted by Tuesday, 21 August, 2012
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S&P 500 Elliott Wave Analysis: Possible Major Reversal Day

This long term S&P 500 Elliott Wave analysis chart shows a bearish wave count we have been following for some weeks now and as you can see, it has followed the expected path near perfectly. The new high today will have triggered a large number of stops and after weeks of constant grind up, it may have been enough to give us the capitulation that can now allow for a larger decline.

Targets and support / resistance levels are reserved for subscribers to Kennys Elliott Wave Analysis but if this wave count is correct we can expect a decline into the next 9 month cycle low. Free charts are available in my free chart list at Stockcharts.

S&P500 Elliott Wave Analysis Chart