Sums up pretty well today’s trade in gold. Sellers tried a few times to take it lower but couldn’t get any traction. With NFP [Non Farm Payrolls] from the
lying BLS [Bureau of labor Statistics] showing little surprise, most traders shrugged their shoulders and said, “What am I doing here”. With Barry Soetero hiding out in Cannes, trying to export to Europe his magic touch to solving the Euro crisis, there weren’t many other headlines that mattered enough to move the market.
Without further ado, today's candlestick chart explains everything.
OK, maybe not, but it certainly felt like it.
Being the investigative trader/blogger that I am, I left the office early to have lunch with former Treasurer and Chief Accountant of MF Global, Inc. I am of course referring to Jethro Bodine. I caught up with him at his favorite restaurant and what follows is my in depth coverage of the MF [appropriately named I think] bankruptcy.
Vegas: “Jethro, nice to see you. Please tell my readers what you know about this mess. Can you tell us what happened?
Jethro: “Sure vegas, we stole the money. Can I get some fries too?”
Well, there you have it.
[Note: Regulators from the SEC, CFTC, as well as uber-exchange CME were invited to this lunch, but all expressed regret that an official investigation is currently under way and commenting would be inappropriate. That and the fact I wouldn’t buy lunch for them, kinda sealed the deal.]
Today was the kind of day a new, or undisciplined, trader easily could have gotten into trouble. Not the way you think though. It’s price action like today that make it easy to trade by-the-seat-of-your-pants and make money. A dangerous, false sense of security that this is what trading is about. I can assure you it isn’t.
The BSFG algo didn’t produce anything of significance today. About a wash really, depending on how and where you got filled. Might have made or lost a few pennies either way. No matter, days like this are to be survived. They happen, and we deal with them.
Have a great weekend everybody..