A TWO-EDGED SWORD

                             Which Side Of The Sword Kills You?

I have no explanation of the way gold is trading intra day. Just when you think you have seen it all, the last couple of weeks teaches me there are still moments that leave me shaking my head.

No sense regurgitating what I have said before in past posts these last few weeks.

What I will do is leave all traders with a very important warning: what they goose to the upside in “off hours” they will take back on the downside in spades. Be very careful with your sell stops on the downside. If you place them where everybody else does, based on traditional support levels, your account will be very sorry.

More on today’s trade at http://vegaspamm.blogspot.com

Have a good day everyone.

-vegas

P.S. Some of your who use hushmail need to clean your email box out, as I’m getting “no delivery notices” because your box is full, when sending you emails.

What a Week To Start

                         MF Global, Inc. Compliance Department

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