Read It & Weep
A bunch of market moving news items out of Europe over the weekend failed to move gold in Asia. Then, in a few seconds at the European open, the damage started. In total, it was short term bearish for gold, but long term bullish.
The algorithm gave a buy signal off the first low today, but since the range was so low I ignored it. The second low put in during the U.S. session gave another buy signal and we got long, but the dynamics in the market ahead of Wednesday’s Fed meeting are putting a damper on rallies. Risk on the trade was acceptable, but slippage was an issue again today, as the dealer clipped us over $0.50 getting in the trade.
We still made some money today, although not a lot, as the market chops within a few bucks of where we liquidated the trade.
We have to be careful down here near 1600; stops below this level are gigantic, and if broken I have no idea where gold will level off and stabilize. A Central Planner raid, while nobody is looking for it, is a definite possibility as is a very sharp drop down from somebody who wants to be the first one out of the boat if water starts leaking.
Last night I was looking at EURJPY for a sell signal to get short, but the market never rallied much and just leaked lower.
Over all, since I made the necessary updates to the algorithm, it has performed well in all of the markets.
Have a good day everyone.
-vegas
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