“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!
-vegas
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!”
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