WEASEL TRADING

                                            Yea, Like Dealers

Watching gold and oil over the night and today, it never ceases to amaze me the depths to which dealers literally screw the trading public; most notably the erratic changes in bids and offers while they make you wait for a fill. What good is a 30 cent spread in gold if the slippage is always 30 – 50 cents?

“No, I don’t want any cookies; you’re a weasel!!”

I still think before we get a good rally in either oil or gold, Asia has to sell off at least for one night. It doesn’t have to be complete capitulation, just some selling so we go into Europe on or near the low.

Like other days, I have also been waiting for crude to fill the daily chart gap at 103.88. If gold would have had any weakness in the U.S. session, the market may have gone for it. As it was, crude had a mild reversal off the low and started higher pretty quickly.

I was able to get long a small crude position, but I’m not buying [in volume] a market that goes straight up. Turns out that rally, along with gold, was a QE3 rumor from the Fed via the Wall Street Journal. “Great, I need a rumor to make money.”

As long as you know the weasels are there, and can deal with them, you’ll be OK. Just don’t ever forget they NEVER leave.

Have a good day everyone.

-vegas