Out In Force Today
Another day where the Central Planners were out in force in
the gold market. Not content to gobsmack it down $20 in Asia and early Europe, the rock got rolled back up the hill for another
move down.
The problem with piggy-backing them is that they care not
about profits/losses; they only care about getting the price down. If they are
$10 or $20 [or even more] early they don’t care; you and I should.
Since last week you have to be blind and/or stupid not to be
able to see them in the market above 1580. It slowly climbs and then BOOOOOOM! Down
$2 or more in a second or two; climb again rinse and repeat. Cover under 1580
and start fresh again.
“Errr, we only
represent customers and do no proprietary trading”
“Yea, sure; by the way
is my check in the mail?”
Gold continues to be plagued by extremely sharp moves both
up and down in a fraction of a second. You get yourself on the wrong side of
one of these, and it isn’t a very easy task to then try and make it back. What
goes out of your pocket in a heartbeat might take many hours or even days to
get back, and that’s if you are lucky.
This is what I call a lack of “trader volatility”; multiple trend moves within the same day in
the same direction. Without it you have almost no chance of making losses back
during the day if you get on the wrong side of a trade. What we get now are
micro-bursts; gold pops up $5 in 3 seconds, spends the next 3 hours going up
$2, and then drops $6 in 10 minutes. Very tough trading scenario.
Still, I think what will drive the market until the next Fed
meeting [and Greek elections] will be one of perceptions about QE3; will they
or won’t they? Thing is, this is about there last chance to do anything before
the election and make it count [if it works, which is a big if]. So, the market
is particularly interested to see what Weimar Ben has up his sleeve.
Any thoughts the Cntrl-P button isn’t pushed and it won’t be
a pretty picture for gold.
Have a good day everyone.
-vegas
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