Just A Tad Different
To say that the gold market is a lot like last year isn’t saying much. On recent days I’m struggling to see the connection. So far this year, activity in Asia and Europe has been muted at best, with choppy tight ranges that get made in about 20 minutes. Outside of that, it’s a stop hunt for the dealers.
We continue to be in “buy mode”, looking for our signals where appropriate. We got a buy signal immediately at our session open around Midnight [Chicago time] and baled out of it when it came back to make a few pennies / oz.
In these types of low volatility affairs, I’m just not willing to give up anything once I’m up a buck or two. I’ll take the free trade, but if action by definition is slow and choppy, even the free trade isn’t going anywhere.
The algorithm outperformed me today by a few pennies per oz., as the liquidation signal came just a few cents above where I got out. So, no real news here, except to say that it continued to rally a few more dollars from the post European open.
As is usual in low volatility trading, the correction off the high was fast and wicked, with prices pulling back into congestion.
So, while the algorithm worked today, it didn’t mean much to us as it only gave us a few pennies per oz.
Do not be surprised if you see some AUDUSD trading coming here, along with some comments. Volatility has been good and ranges high as this has very much become the play on “China” and is considered a “risk on” commodity currency because of the large mining economy in the country.
For those who wish to trade AUDUSD, there are no real limitations as to time of day. It trades well in all 3 major market sessions.
Have a good day everyone!
-vegas
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