SETTING PRIORITIES

                                  Mum Says Do Chores First

A couple of administrative notes before I comment on today’s action.

First, I am adding AUDUSD to my comments each day along with XAUUSD [spot gold].

Second, starting tomorrow Feb. 2, 2012, I will post comments regarding XAUUSD & AUDUSD sometime between 2:00 PM and 4:00 PM [Chicago time] each market day. This will help you better plan your market day and give you a window for my comments and at the same time allow me to comment on market conditions from the US session.

XAUUSD

Market continues to suffer from a) high spreads, b) tight daily ranges, and c) dealer non liquidity. If you can’t see the difference from now and Q4 2011, you are blind or in denial, or both.

We came into the day in “neutral mode” and before the US session opened we were in “buy mode”. After this change in mode, there were 2 buy signals I could have taken, but I didn’t. The first would have resulted in a small loss, and the second maybe would have gotten back to even. At worst, it would have netted a loss of about a dollar.

So, again I outperformed the algorithm by not getting sucked into a market that feels like it’s going nowhere fast.

This took us up to our time window in gold to 11 AM [Chicago time]. After this time, I refuse to take new positions due to time constraints on profitability. So, no trading in gold today.

AUDUSD

I got to trading a little late last night and missed the early “buy” signal in AUD. For the rest of the entire trading day, we got no other buy signal.

Now, I don’t chase markets. If it goes, and for whatever reason I’m not in it, I’m not just going to seat-of-my-pants wing it and take a position just so I can say, “Hey, I got a position.”

The market is in “buy mode” for now, and I look to take a position as it backs off it’s rally and gives a “buy signal”. That’s how I trade, and that’s how we make money.

I’ll have more comments on AUD as we trade it in the days and weeks ahead.

Have a good day everyone!

-vegas