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From the way gold is trading I have to think that we are closer to a top than a bottom. The Gap fill was completed and the market reacted by selling off quite significantly. Basically, you're 50 points risk to the upside and 100 plus to the downside... I like the R:R here on the short side. The other possibility is that this becomes one gigantic wedge break to the upside.... lol.
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Same with the CAD. I will attempt a short in the next 24 to 48 hours up into resistance on both commodities.
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*EDIT* short starters in Gold and CAD - 1357 and 0,9920 resp.
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*EDIT* This is why you never go all in at one spot. Took a small loss on my GC contracts and my CAD futures positions. No bid deal. At least we now know what we're playing with. It's interesting that this is all taking place before the open... Could see a massive fade.
Hey jeff, i am glad you are still hanging in there. This QE2 stuff is causing too many heads swirl. I man knee deep in shorts and with some losses too. Let's see how far these guys can keep the ship afloat with HFTs and QEs. :-)
ReplyDeleteHey Jason,
ReplyDeleteThe market makes no sense right now. I think most of the traders that I talk to are completely puzzled and angry to be honest. If you're a bear - you're getting smashed - if you're a bull - there are no real pullbacks to buy. No human in his right mind would be buying (investing) at these levels. It makes it even harder in that the futures are the most corelated to underlying stocks in history. So when the music stops, everyone will be running for the exit at the same time.
From what I've seen in the past, the ES needs to hold up above the breakout point for 3 closes. If it can do that, then we could be off to the races, but the USD is clearly oversold and seems to be leading us down. Gold going down 40 one day and up 50 the next indicates great uncertainty. I am still day trading equities but will continue to post swing and position trades as they initiate.
Hope you are well.