“RESUME? I NEED TO APPLY WITH A FRICKIN’ RESUME?”
It’s about this time every year, last year’s Yuan devaluation surprise notwithstanding, that trading turns into absolute “shit on a stick”. You can freeze that stick, put sugar and cinnamon on it, put a fancy napkin around it, but no matter what you do all you still got is “shit on a stick”.
And so, I can hear the circus calling me; ever so sweet and lovable voices in my head telling me once again how wonderful it would be to just “turn the damn machines off” and do something worthwhile and beneficial for our modern day dysfunctional society; hence my application is just sitting here waiting to be mailed to the nearest circus so I can be a professional groomer to the bearded lady. “Hey, I ain’t interested in no apprenticeship; I want that high level executive groomer job promised me in the magazine, OK?”
And just as I’m about to hand it “rush delivery” to the mailman, gold moves and I find myself in a trade. Directly below the first and only trade of the day, shortly after the 08:00 New York open [15:00 LMFX server time]; yea, I know there will be other trading signals today, and yea I know it’s early. But I also know it’s late August, and with no news to speak of except Cankles can open a jar of pickles to prove her health [Christ how this country has gone to complete and utter hell in a couple of generations], I’m not really interested in hanging around for “mystery ticks” out of nowhere that are nothing more than dealer stop hunts. Rinse, repeat about 5 times and there’s your day.
As the algorithm name suggests [that would be “volatility” Obama voters just waking up], intraday volatility is the key component in making money; take that away, and have gold put in $6 - $9 ranges [about 0.50% - 0.60% given the current price], and you are going to have a tough time making money. Why? Short answer: there is no follow through to any move; all there is are short spikes up/down directly aimed at retail spec stops. When the bullion banks and dealer community see volumes fall off and ranges come in, they lick their collective chops because they know they can get you to buy the highs and sell the lows [hopefully multiple times in a day].
And what time of year are we in right now? Yes, and until proven contrary, expect rather thin volumes and very constrained ranges until Labor Day is over [Sept. 5]; what that means of course is to make early trades based on algorithm signals and then after you are up money, leave it the hell alone. Be like the rest of us beach bums down here in the Caribbean and find something to do but look at a gold chart that has an EKG of a cadaver at the morgue.
And just as I’m ready to leave for the beach and kick back that first Corona with lime [“Hey, I need the Vitamin C Ok?”], gold breaks down back into the 1330’s. And I’m telling you, the longer we hang around in the 1330’s, the more the probability those lows from days and weeks ago between 1328 – 1330 will get violated in a big way; and if you dare to get long between 1331 – 1333 with a tight stop, just be prepared to get filled around somewhere between 1320 – 1325 when the sell stops get run. Hopefully, this action doesn’t happen in Asia and/or Europe and the action can be confined to the New York session.
Well, here we are past Noon, and gold is starting to drift like a late night party at the nursing home; I’d be shocked if anything moved more than a buck or two the rest of the day. Another beautiful day here in Paradise; the dog says it’s 1) time for a beggin’ strip and 2) let’s hit the beach!
Have a great day everybody!
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