Plug Your Nose; Close Your Eyes
Sounds like two characters from “Green Acres”. Unfortunately, for traders, it isn’t nearly as funny. There is no more give and take, up and down, ebb and flow if you will; there is only panic and the subsequent money tsunami that follows in 3…2…1…
You are either there for the ride or you’re not; train is leaving the station and it doesn’t wait. One day it’s the gold cartel slamming down the market straight for $20 - $30 in 3 hours, where you couldn’t get an uptick to save your life, and the next day it’s straight up for 45 minutes to 2 hours and $15 - $25 and you can’t get a downtick to save your life. No matter which, when it’s over, that’s it. Yawn rinse and repeat; once the buying/selling orgy is finished there isn’t anything left.
“HEY, get back in here and play. C’mon guys where are you?”
Today the bomb goes off on the upside; 55 minutes of just about straight up. Ridiculous quotes, spreads go up, market moves in $0.50 and $1.00 increments, dealers “painting the tape”, and mystery ticks galore. Welcome to gold trading 2012.
I particularly don’t like the way the 5M charts are being manipulated in the last 60 – 90 seconds of each chart period; big money is playing games.
So, what we have in the marketplace now are discrete discontinuous trading days; what happens on Monday has nothing to do with Tuesday and so on. What matters is what group panics first on any particular day.
So, after the trading orgy, you’re left with traders stuck on the other side, and no volume coming in for any kind of follow through. Now, the dealers got you and what comes next is the stop hunt to see just how excited you are about holding that position. Guess what? They know how excited you are. [Hint: not very.]
Musical chairs and you can’t hear any music. Drip, drip, and drip some more into the close and every 15 or 20 minutes some more longs get stopped out from this morning.
In any normal market, I should be up thousands; instead I get a large pizza.
“First prize is a brand new Cadillac, second prize is a set of steak knives.” Thank you. Some deal huh?
Have a good day everyone.