PLAYING THE RANGE

                                           Yogi Trades Gold

A pretty dull Monday in Asia and Europe. Not much better in the U.S. session, but the range got extended to about $17 on a spike. Of course, the “Lemmings in Asia” put in the early high before Europe sold it off.

“Hey, there isn’t anything you can’t buy that Europe or the U.S. sessions can’t take lower and make cheaper!”

Until crude starts to put in its normal range [230 – 280 ticks per day for at least a couple of days in a row], I’m going to forgo commenting on it. I’m not getting involved unless it has volatility, and right now it is definitely lacking intra day.

I’m playing the range in gold, looking for those opportunities that expand a low probability range into something more normal [$16 - $23 / oz.] and then taking the money on the spikes.

From midnight until about 1:30 PM [Chicago time], the algorithm had 5 buy signals, 4 of which either broke even or lost money. The last signal would have gotten you back to break even with the rally that made a new high. However, this isn’t how I want to trade.

Until we get ranges and intra day volatility that is more normal, I will continue to trade the range and pick the algo signals that confirm a high probability trade or trades.

Today we had a nice trade that added an incremental return of about 0.4 %. I was only off a few pennies from the high when I sold before the market broke back a few dollars. In this type of current market, you can’t wait for the algorithm liquidation signals to get out; you are giving up too much money because of the spikes/drops that are currently in vogue. Take the money and run. Rinse and repeat often!

We make the dealers, hedge funds, bankers, and the rest of the retail field pay us.

Have a good day everyone.

-vegas