Move Or Get Run Over
Before I comment on today’s action, in case you didn’t read my other post, please do so now over at http://vegasxau.blogspot.com
A pretty dull affair until the U.S. session got underway. A couple of hours into Chicago trading and gold still only had a $10 range. Then all hell broke loose in crude oil, and the runaway market freight train was on the loose down the mountain.
Sell stops hit everywhere in crude as the market broke its month support level at about 103.80 and helped put in the range of 355 ticks. Hopefully, crude can get its volatility mojo back and we start to see 250 + tick ranges going forward.
For most of the day being long gold meant losing money. I had 2 long positions that produced very small gains. Once again, slippage a factor getting in and liquidating.
And once again today, especially on the way up after 1 PM, it is so evident as you watch the market and the dealers, that active manipulation is taking place. Sure, you can pretty much expect them to always metaphorically kill sell stops on the way down.
But the mystery “Nibble Nibble BOOM!” down draft ticks that take place, after most of the days activity is over or winding down, are shameless. Within seconds it is right back up: the purpose of course is to get you to do something you don’t want to do.
The gold market can’t muster a rally all day long for more than 15 minutes and maybe a buck or two before heavy selling erupts sending prices lower. But take away the volume, and move to the lightest part of the day, and all of a sudden we start the “stealth advance” that has become so prevalent these last few months.
What to make of this?
Dealer buying into Asia to meet the retail demand expected when the new session starts tonight. You buy everything in sight, knowing full well nobody is going to sell in size and then fill the “Lemmings in Asia” at higher prices. What a nice gig. Going forward, expect us to be a part of this if I see it happening like today.
Have a good day everyone.
-vegas
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