Trading Hell

                                        Gold Dealer As A Kid

Today felt like a low was put in for gold. We’ll see of course, but it sure felt like it. In the 2 hours between 7:30 A.M. and 9:30 A.M. [Chicago time] market trading was as chaotic and crazy as I have ever seen it; and having done this for 30+ years, that’s pretty crazy.

The fact that I lost a few pennies almost seems like a victory today.

Slippage is becoming a major issue in trading. The dealers are moving prices faster than I have ever seen it in the electronic trading era. Stops are also becoming a major issue as most of the moves through support and resistance result in huge dollar price gaps.

I’m hoping things can settle down a bit, but I have adjusted my trading to deal with what we have seen today. I’ll be playing more of the daily range within the confines of the algorithm. Look for bigger volumes being held for longer periods of time as we try and take advantage of the volatility. I’ll also initiate more trades earlier in the day so that we can get on the right side of the market for bigger moves.

Have a good day everyone.

-vegas