“So, you’re sayin’ gold rallied in Asia Last night?”
Just a scant few minutes from the 08:00 New York open today, gold just hit a low for the day, about $9 and change from the high overnight …. where? “Alex, I’ll take dumb ass Asian gold traders for $1000 please! What is the Asian session?” Winner winner, chicken dinner.
Take New York trading away from our favorite yellow pet rock, and it would be at $10,000 per Oz.; and yet, the vast majority of days when these clueless Twits bid it up overnight, the Fed and their sycophant bullion bank cohorts take it down 6 – 12 hours later. You’d think they would learn, but it appears they never do.
And of course, on those days when gold does actually move lower in Asia, any guesses as to what usually happens in New York later in the FX day? “Damn, you people are smart!” Now, and this should go without saying but I throw it in because this isn’t an exact 100% correlation; nothing in trading ever is 100% [except the LP’s, who are always there to fuck you whenever possible given the opportunity]. So, for Obama/Cankles voters & other clueless Sheeple who get up each day at 11:00 A.M. local time and wander aimlessly around the internet and sometimes land on my blog, let me spell it out for you in “black & white” so maybe … maybe I’m sayin’… maybe you can supplement that EBT balance you get every month with some solid trading advice. [“Oh shit, was that a micro-aggression?”]
If gold rallies in Asia, it’s gonna get sold off in New York. If gold breaks in price in Asia, there is a very strong chance it will rally in New York. The vast majority of the time, the 2 daily sessions work opposite each other. And while the gold volatility algorithm formally pays no attention to this dynamic through signals on the M1, it indirectly does affect the algorithm because of the calculation of the “white daily horizontal line” used for the buying rules on the M1.
Hell, even if you paid no attention to my algorithm [which you do at your own risk], this one fact alone should tell you on what days you can expect a decent bounce in the gold price in New York; many, many times the scenario plays out with 1) Asia goes lower, 2) Europe into the New York session is slightly higher/flat to maybe slightly lower, and then 3) New York opens and there is a quick move lower followed by a snap back rally that takes price right back from where it broke down. And from there, it’s off to the races on the upside.
Gold plays out like this so often, it is one of the reasons why the gold volatility algorithm has such a remarkable trading record, if you look at the long trades it recommends via the algorithm rules. This isn’t “brain surgery” folks; it’s called “pattern recognition” with a very long historical track record that goes back days/weeks/months/years.
Some of the dumbest human beings I have ever met were floor traders in the pits of Chitown; these guys couldn’t find their asses with both hands if they had a road map from Rand-McNally. Their families or wives/girlfriends/mistresses sent them to the exchange floor because they couldn’t find reliable babysitters to watch them during the business day, and didn’t want them hanging out with their drug dealers or spending the entire day at some neighborhood bar. But while they might have been stupid, they weren’t fucking dumb; give them credit, for if they were there longer than a month, they figured out rather quickly [or they were gone] how to spot when prices were likely to go higher and when prices were likely to go lower and then get into the appropriate position for profit. Call it anything you want, a rose is still a rose no matter the semantics; it’s called “pattern recognition” and it drives prices the vast majority of days, especially in the financials.
Go ahead, fight the “tape” each and every day, and pay no attention to the gritty details of “pattern recognition”, and be like my friend Mr. Salmon directly below.
“When Mr. Market ruins your fun.”
So, coming into today, after spending the last half of yesterday’s “Indigenous Peoples Day” Holiday [“wait … what?... I mean Columbus Day”] at the beach, it very much looks, at least starting the day and then anything can happen, like the Chuckleheads in Asia “gave away the store” again last night in the wee hours with a rally to the day’s high, and we are left with mindless chop.
And so, 3 hours + into this bucket of gold slop, we’re sitting in mindless chop with a massive $3.50 per Oz. range, with death by firing squad seemingly looking like a viable option; “gee, who cold have predicted this?” And while the financial “talking heads” will point their post game analysis of today on a stronger dollar against the usual suspects, it’s the Chuckleheads in Asia who started this mess. Quite frankly, this market is starting to piss me off some.
In order to put myself in the right “trader attitude” for tomorrow, maybe I’ll go with the Mrs. today and help pick out new fabric for our master bedroom? [“Wait … what?... Nahhhhhhhh, just messin’ with all of you to see if you’re paying attention!"] The dog and I are officially outta here for the beach!
Have a great day everybody!
OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”