After a somewhat extended hiatus, I'm glad to report I'm back [better than ever of course]. The title kind of says it all this week: The largest futures broker in the world, MF Global, Inc., declares bankruptcy, the Euro is about to get "Greeked", and the Fed basically has told the world it has no clue what to do. Other than that, not much going on.
Gold was all over the place today; starting at the lows and rallying to put the high in around 1744 and then on the Fed "minutes" dropping rather quickly to 1719 before retracing almost all of the drop. My BFSG algo picked up most of the first rally out of Asia, so no need to get involved when Weimar Ben took over around 1 PM.
Trading near support/resistance levels continues to be dangerous, as hedge funds and dealers are running the stops on a constant basis; gaps of over $2 can be seen in a second. I continue to preach about not putting your stops in obvious technical situations; you are just asking for a lousy fill.
Overall, gold is pretty well supported and I most definitely prefer to buy on the breaks. So, how do we do that? Best strategy is in the algorithm. Download it now at the link.
More comments tomorrow as I get into this.
-vegas
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