Jun

11

goldI noticed yesterday, even with the latest sell off in equities– Euro, Aussie– most majors against the USD held firm. Was this a signal about an imminent, albeit maybe short term, momentum shift?

Secondly, what great structure the gold market has on this move. It looks interestingly poised at the moment. It failed to take out the recent swing high, resulting in a double top, and now resting on the recent higher degree trendline from its last acceleration at a new velocity. As the double top is fairly close, it's not see as a signal for a massive reversal, but no doubt needs to be respected. There will be a couple of days of tight trading no doubt.

Nick White writes:

GladiatorIs not the currency market the place of greatest despair– a sort of trader's purgatory? I can almost smell the sulfur, feel the rush of steam escaping and hear the screams of those labouring eternally under their use of 500x leverage.

In fact, FX markets and traders make me think of the film Gladiator…relegated out into the midst of some provincial nowhere (my edge is in ZAR/ESS!!!), taken as a slave, forced to fight in the most barbarous and treacherous conditions, with shoddy weapons (TA), plagued utterly and hopelessly by randomness: all for the minutest, tiniest conceivable chance that they might one day win the series of coin tosses, fight in front of the Emperor in Rome, win their freedom, and be allowed to trade something substantive again.in less colourful language: FX seems to me to these days to be all noise, no signal– except in a very precious few situations. 


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