The Federal Reserve Decision Makers
There’s almost no trading anymore; everybody just waits for the Fed to manipulate intervene and reacts from that. Today is total evidence of that.
As I stated on my other post, for the first 15 hours of trading today we didn’t even have a $5 range. Then, in one second [literally] gold got hit $15 to the downside. The market recovers; the algorithm gives a buy signal; we get long; the market chops for a while before heading higher; we get out on a minor price spike and make a little money.
I realize the market rallied farther up, but you can’t count on a reversal day every single time gold goes lower.
A lot of traders got hurt today; I can tell from the action and the way it traded after the manipulation from this morning. There seemed to be more than the normal price spikes and prices jerked upward rather quickly each time, telling me people were reversing.
Trading is a mess right now. Nobody is willing to trade overnight because they know of the potential carnage that may possibly come when the U.S. opens; that leads to a very tight range. Since the range is so tight, it doesn’t take much to hit a new high or low or both within minutes. Make no mistake; this is the havoc the Fed wants in the gold market.
The market lacks follow through; all you have to do is look at the all of the candlestick tails on the daily chart over these last months. It is difficult to judge this flow, as one second it looks good and the next it looks like a death trade.
In any event, all that really matters is money. In that regard, we added some incremental returns today.
Have a good day everyone.
-vegas
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