IN JUST A FEW SECONDS

                                            Yea Mom, I Know

I can accept the losses I had in EURUSD yesterday; what I can’t accept is what happened in gold this morning near the U.S. open. I have stated before just how dysfunctional gold has become; today just took the cake.

I had gone overnight positioned long gold; I had a long position slightly larger in size than a short position to get around the minimum amount for trading and make sure we weren’t too over leveraged.

Down $5 to a new low, straight up $14 to a new high, down $15 to another new low, then back up $5 to the middle; all this in a matter of minutes. I’m sorry, this stuff is no longer tradable, and until I see definitive evidence the dealer games aren’t going to hurt me, I refuse to trade gold any longer. Period.

How bad was it?

Usually, my absolute upper bound for losses is 10%. Because of the nature of the gold trade today, the way stops are set off and subsequent quotes gap in a microsecond, our loss from yesterday and today is about 12%. The difference between being up 5% and down 12% in just a few seconds. That isn’t trading, it is gambling.

Ok, so we got whacked around some. No matter what I add to what happened, the outcome is the same, so it is time to move on. Greek elections on Sunday will make Sunday evening Asia trade interesting to say the least.

The only thing you can do as a trader when something like this happens, is to not cry about it and whine, but to adjust and get back to the algorithm in the currency pairs and focus on the next trade; and not think about how some gold dealer screwed us beyond belief.

Ending NAV:   0.8967

Yea, it’s ugly, and I’m not happy about it, but it is time to look forward to Monday and start to make the NAV go consistently higher again. It’s all I can do after the mugging I got.

Have a good weekend everyone.

-vegas