“Look Skippy! … a gold chart!”
“The dead cats are bouncing … and after a wicked selloff, this is the best we can
do in gold”? … directly below, the daily candlestick in gold, and if we open in
Asia tonight higher on the day and begin to go lower, it has the potential to get
ugly on the downside … cuz after 2 days of pitiful trading action, all that we’ve
really done is work off an oversold condition in gold for the next leg lower,
without really doing anything on the upside.
click to enlarge
I don’t even know where to start in analyzing the current state of the trade
… to say it’s pathetic is an understatement … we had bigger ranges when gold
was at $300 … and once again, for like the umpteenth million time, New York
offers simply the worst gold trading conditions you can see … nothing but
“chop”, spikes to nowhere, and dealer stop hunts … rinse, repeat endlessly,
and that about sums up the trade. “I don’t know what this is, but this isn’t
trading as I know it … and quite frankly, if the market doesn’t rally with more
force than it’s seen in the last 2 days, we’re gonna see lower price for sure
… there just isn’t any impetus in the market right now to move it higher … it’s
gonna need to see price above 1215 to take itself out of trouble, and it sure looks
to me like the “Great Bullion Wall of Selling” is up there between 1210 - 1215
… at this point, though, with the dinkiest ranges I’ve seen in a long while, the
real risk here aren’t the spikes up, they’re the spikes down … so while many
might look for some upside here, and maybe we get some, it all goes away with a
30 second down spike from hell that wipes away hours of inching higher … until
trading action picks up, being long from these levels is risky to say the least
… these “rinky dink” rallies of $1 - $3 that take 5 hours to climb, aren’t gonna
cut it, if you expect gold to move higher … we need force off the bottom, not
“dead cat bounces” that are simply short covering with zero follow through
… simply put, it’s a recipe for lower price dead ahead”.
Noon in New York, and after 5 hours we got an approximate $3.50 range
going … “hang on, let me pull up my big girl panties to handle the volatility”.
Intraday volatility so low, I need an electron microscope to measure it … and
when it gets like this, it’s simply untradeable in any manner, shape, or form
… there simply isn’t any buy/sell signal that moves, with over 50% that are
“false positives” … all I can do is wait.
No trades today in the PAMM or at C2 options signal advisory. Nothing to do
when it won’t move … what else can I say?
How bad is it? … “hell, after almost 20 hours, we can’t even get a $7 range for
the day … we’re sitting at 6 and change as I write, and that’s from the tips
… this market is simply exhibiting a buyers strike, with the bullion dealers firmly
in control selling every tick up … if you like dead cats, you’ll love gold”. If I trade
this, under these conditions, all I’m doing is handing money to dealers … this is
crap, where you can’t buy it or sell it, and there’s zero volume, less liquidity,
with dealer induced spikes from hell that go nowhere … only thing to do is sit
and wait.
Until tomorrow mi amigos … I’m outta here … Onward & Upward!!
Have a great day everybody!!
UPDATE @ 3:15 PM EST: “Well, that escalated quickly didn’t it? … about
effing time gold woke the hell up and did something besides go up/down 10 cents
over an hour … still, so far only a “dead cat bounce” that stuffed shorts, while
bullion dealers helped themselves to the buffet at 1215 - 1216 … if history is any
guide, the “Chuckleheads” in Asia will bid it higher this evening into the
European open, where it will be time to “fish or cut bait” for price … if
somehow they can get gold over 1220 and keep it there, it bodes for an explosion
to the upside if we test and go over 1230 once more … if not, it will sell off back
down to the 1200 level … let’s hope this kind of trading action since the early
afternoon started in New York continues”.
-vegas
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