Well, As A Matter Of Fact I Do
I like volatility; I even like above normal volatility; but “postal” volatility? Errrrr, no thanks.
Because they are tangentially related, I can promise you that anytime gold moves $90 - $100 / oz. within an hour, crude is going to sit up and take notice. Today was one of those days.
Sure, plenty of chances for profit; many more chances to get destroyed. I had a scratch trade today, one that was profitable but quickly came back and took my “free trade” out. Then gold broke about $50 / oz. in a matter of a minute. Crude quickly followed.
When you get these waterfalls, it is impossible to know or have any confidence in support levels. Sure, I wanted to buy below 105.50, but with gold down $90 / oz., am I supposed to infer crude has a big rally in it? Chances are it won’t; that doesn’t mean it can’t [and it did].
For the 3rd day in a row, the market has experienced these lower stop hunts, and if you look at an hourly candlestick you will instantly know what I mean. I don’t have a problem with this kind of action, but when I see gold go $50 / oz. lower in a minute, there isn’t any way I want to be long crude at the same time.
So, what to do? Easy; walk away and come back later. This is probably the hardest thing a non professional trader faces. It sounds easy; it isn’t. but I do know one thing; there are a whole lot of people who wish they had only a scratch trade today. A whole lot.
My first priority is to stay out of trouble; then we make money.
I’m hoping we can get the 1700 level taken out in gold so that crude can trade higher tomorrow. If it does, I’ll be there.
Have a good day everyone.
-vegas
P.S. As I post, gold has broken 1700. I guess they couldn’t wait until tonight.
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