No Matter Where You Are
First Crude.
This was the 3rd day in a row of lower volatility in the crude market. As I write this, the range is 178. Quick knee-jerk moves with no follow through have been the norm lately. Volatility needs to pick back up to get me back in this market.
Now gold.
I came into today’s trade expecting some more upside action. Actually the day was set up for further gains rather poorly by the Sunday night open. A $5 gap higher followed by a sell off really set the tone in Asia. With no fresh long buying, the market started to drift lower.
As I said in my other post, the algorithm did give some good entry signals; the problem was no follow through on the upside. The only decent rally came in the U.S. session; the fast algorithm signal never came, and the slower algorithm signal came after the $10 rally. After that, not much of anything happened the rest of the day except some back-and-forth chop.
I finished the day again with incremental gains; not what I wanted obviously, but today’s algorithm signals on the whole would have been about break-even at the end of the day. So, I out performed the algo, which I will take any day.
The market feels like it is stabilizing and building a base from which to move higher. It probably will take a few more weeks, but something is gonna give here, either at 1725 or 1675. Expect extreme fireworks on both sides.
As always, expect dealers to widen spreads, run stops, and give you fills that make you want to throw up [slippage]. So what else is new?
Have a good day everyone.
-vegas
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