“Gold would like to know!”
Well now, we’ve gone from bat shit crazy to “sleepytime” in gold, quicker than
Eric Swalwell’s presidential campaign [if that’s possible!] … Asia so quiet I can
even hear the crickets from the Caribbean! … amazing how quick the market’s
psyche can change from “can’t miss higher” to “I dunno”.
Mid morning in New York, and to say gold is quiet, is an insult to quiet … there
have been a few algo buy signals, which I haven’t taken, simply cuz they haven’t
gone anywhere … from my perspective, these conditions aren’t worth trading in
cuz the reward /risk ratio is so skewed against you, it makes no sense to risk
$200 to make $20 … and quite frankly, that’s where we’re at … like I said, way too
quiet, and not just in gold, cuz everything else on the board looks and feels like
it’s on vacation.
I don’t even know where to start with today … at 11:00 AM EST, a blast out of
nowhere to the upside in 2 M1’s, that goes nowhere for hours … then later another
2 minute wonder that goes nowhere, and that is literally the day … unreal … again,
what episode of “The Twilight Zone” am I in? And while I generally expect
somewhat of a slowdown in gold VIX before the next FED meeting on July 31, this
is ridiculous … who pulled the plug?
Looking at the New York day from 2 PM EST, this is as big a bucket of bat guano
as you’re ever going to see … just horrible trading action except for 4 M1’s … so,
what do you do with that? … well, you leave it alone is what you do, cuz if you
don’t and they catch you the wrong way, you got no way to make anything back
to the close.
Everybody needs a certain modicum of volatility in the market, or else there is
nothing … and the last 2 days have seen about as close to zero during the New
York day as you’re going to get … sure, the algorithm works in these rotten
conditions, but so what? … what am I gaining for the risk? So while algo signals
today probably would be up something small, so what? … for the risk I’m taking,
at least move some, so when there is a loss, I’ve got at least some chance to go
back on the next signal and make it back or make more … and today and
yesterday has seen none of that at all … just really weird how gold volatility has
fallen off the “Thelma & Louise” cliff so quickly.
Onto tomorrow mi amigos … hoping it can’t get any worse than this, but this is
gold, and over the years and decades it’s destroyed more people than armies
could ever accomplish … until then … Onward & Upward!!
Have a great day everybody!
-vegas
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