Just The Facts Ma’am
It didn’t take very long from the heady and jubilant days of yesteryear; back in the day when gold actually rallied and stayed there, to get and keep the trading community long gold. What could possibly go wrong?
I am, of course, referencing last Thursday when it appeared to the entire trading world that gold was about to go orbital after 3 days of almost $50 gains.
“Ahhhhhhhh, for those ancient days…..”
Yes, dear truth seeker, gold has gone cold. Even a causal observer, looking at the daily chart of gold, can see lower highs on rallies and lower lows on breaks. Not exactly trading rocket science.
“Errr, wait a minute der vegas, we got guberments all over da world printin’ money and inflatin’ everything. Gold just hasta go higher!”
“Ahhhh, no it doesn’t.”
It only has to go higher the second you blow your account out and have no money left to trade; as a byproduct and in accordance with the laws of the universe, it will then drive you completely nuts.
The Central Planners went to college just like you [only they passed English 101]; they can read, they can think and they aren’t stupid. They went to the Barnes & Noble store just like you and bought the following:
Sure, they can read charts just like you; only they don’t care if they make money while you hopefully do. All of the traditional and most popular technical indicators you read in that stupid book aren’t going to make you money; the Central Planners will make sure of that.
What they will get you to do is buy the highs and sell the lows; you’ll be Pavlov’s dog only you won’t know it. The central tenet of proper manipulation is to get the trading public to do the buying/selling after the manipulators strike the match; no fingerprints.
So, next time you go absolutely apoplectic because there is a breakout on the “charts”, and you go all in with no stop, remember what the dog in the cage does when the whistle blows.
Have a good day everyone.