Pretty Much Sums It Up
Until the Fed minutes were released, unleashing a $40 downdraft within 20 minutes in gold, we had another FWD [Flying Wedge of Death]; new high, then a new low, followed by a new high, then another new low. Oh yea, then the gold bars went off the cliff.
The bad news: we got caught playing the range today and stopped out twice with a loss.
The good news: our volume was light so the dollar amount lost was relatively small.
Don’t get me wrong, I don’t like paper cuts either, but it beats getting clobbered by double digits. So far, in the last 3 – 5 weeks, we have had [including today] 5 FWD’s. In the entire year of 2011 I remember 2 days with this type of trading. It happens and we deal with it.
Crude oil put in a relatively quiet day with only a 156 tick range, but also had the FWD. Nasty trading action with no follow through from yesterday’s big reversal day. It’s hard to rally crude when gold is getting crushed. I still think the market has rallies in it and will be hard to really break to the downside.
Have a good day everyone.
-vegas
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