SUNDAY UPDATE: WILL MARKETS REACT?

 

“What the G20 is really all about!”

First some bookkeeping; directly below the gold charts correlated with the 

SP500; stock market volatility is going down, while gold remains dead. And if 

you look under the hood, you realize quickly the New York range for gold gets 

“skewed” by a few days where the range is above $11+ [which comes on news], 

all the while most days are between $4 - $6, making the range for what it is. As 

you can see, though, gold isn’t reacting with significance to anything. 

 

click to enlarge

 

click to enlarge

After dining on some fine steaks, Trump & Xi, along with the other G20 

fraudsters, have made nice and can pretend the world will now sing  

“Kum-ba-ya” and hold hands, all the while planning & scheming how to kill or 

incapacitate their enemies when they can find the right opportunity. And since 

the worst case scenario didn’t happen, most likely financial markets will 

respond positively to the “lovefest”. Over in oil, though, Putin says Russia will 

not cut production, and so that sector may cause some indigestion as we go 

through Monday. How will gold respond? … probably with a complete yawn, 

as the G20 confab isn’t nearly as important as the FED, and given the  

“good cop, bad cop” schtick put on the markets by Spicoli & his vice Chairman 

sidekick last week, what kind of language is the FED gonna use at its upcoming 

December meeting where a hike in rates is baked into the cake?

What it all means, IMHO, is more “chop” and directionless markets, 

dominated by bullion dealer “scumbaggery” until a more clear picture 

emerges, OR USDCNH starts to move in reaction to perceived FED changes. 

And while I don’t mind chop, I very much do mind shit low ball ranges, cuz it 

literally invites the “Flying Wedge of Death” [FWD] into the market via dealer 

 “scumbaggery” … “do you need any better example of this than Friday? 

… count the trips to the lows, then the highs, back to new lows, then to the highs 

… rinse, repeat, having fun yet? … all inside a tight range that is going nowhere, 

with the obligatory spikes from hell cleaning out stops. And if you’re thinkin’ you 

can outsmart the dealers and try to play the small range FWD, in essence what 

you’re doing is risking dollars to make pennies … and eventually, all your gains 

go “buh bye” on the loser that keeps going … now, you got no chance to make 

anything back and you’re stuck in trading hell”.

As near as 2 years ago, my algorithm for trading gold under different market 

circumstances, had as its basic rule, don’t even think about trading gold in the 

morning if the range overnight is less than $5 … about 95% of the time, it 

would be $7 - $9 coming in, with $5 a rarity … and then proceed to put in a 

daily range of between $15 - $22+, almost every “Hoover Dam” day. Today? 

… please, I’ve just eaten. In fact, just to show how pathetic trading conditions 

have become, directly below a monthly chart of XAUUSD, with commentary 

… simply put, 2 of the last 3 months have seen monthly ranges as low as you’ll 

see in the last 13+ years. Something has got to give here … either it explodes 

one way or the other, or we go “death spiral” like silver … worth watching in 

the days & weeks ahead.

 

click to enlarge

What has me particularly worried about gold, is the fact that actual news 

events in the economic & political realm should be producing ranges in excess 

of $15 per day, but aren’t even coming close … why? … why are we stuck in 

trading shit day after day with almost no end? … sorry to say, I got theories, 

but no concrete answers. 

Bottom line, as I’ve hinted in previous blog posts, is that when gold goes 

“scumbaggery” from the dealers, you simply have to leave it the hell alone, or 

they’re gonna take your money … they find a way, either via spikes, mystery 

ticks, slippage on fills, something or all of the above. Let’s hope this week 

doesn’t see another low volume, zero liquidity nightmare.

Have a great rest of your weekend everybody!!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS OPEN AND

OPERATIONAL, AS WELL AS OUR C2 OPTIONS ADVISORY 

SERVICE.  DETAILS IN “DOWNLOAD LINKS” SECTION IN 

RIGHT HAND COLUMN. START YOUR JOURNEY FROM 

WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!