IMO gold is getting slammed today by people selling in anticipation of a SPX rally. People taking positions off to by stocks.
Wonk.... Of course I took the GDX off. That's why having disciplined entries/ exits is important. I try never to add to positions on up moves or days. That's what I did with my GDX, added when we were up. For me, it's almost always a greedy trade. I would think this is probably the place to be buying it today. Although I would be pretty conservative because it is popping on the ebola news. I really think if this was only ebola based the dollar would be getting stronger not weaker.
I do the opposite. I add when it starts going the direction I expect it to. I never add (learned hard way from past experience) when it goes the "wrong" way I want it to. Whatever works.
Am still Long Silver by a little and still short Gold with most recent short at 1250.50 targeting 1150.50 to unload half position. After I get into original trade which is always against the major trend, I have to wait for trend to change and then wait for very deep retracements for adding. I can't even consider exiting an original position, except for only target on half position, till it gets to other side of 50% of last nine years, then I can start using weekly bars and divergence to look for exits. So lot's of rollovers. But overall, makes very good profits, once in a trade, unless adding occurs, not much to do.
Tomorrow's (Monday) price action might give a clue to how the week may progress and whether or not the correction to downtrend will continue higher. Last 3 Monday's have all been up days - bottom wide range reversal day on 10/6/14, strong trending day on 10/13 and another almost as strong trending day on 10/20. This past Friday was a narrow range inside day after a strong down day on Thursday. Therefore if Thursday's high can be taken out more upside will follow. If instead Thursday's low is broken I expect a move to at least 1209, if not below the reversal low of 10/6. + + + I don't trade off funnymentals but we did have the more stringent EU bank stress tests results released today and they ain't pretty. So it might bring fireworks in many markets. "Get your popcorn ready."
Meh, we've ended up with standard inside day action here going into the fomc statement wed. Will be doing anything but looking at markets for the next couple days unless the bed falls out from under gold or something.
Still in a one lot and challenge account is at ~$2250. Breakeven on the one lot is at ~$1197. Have a feeling the market could turn tomorrow or friday. Going to wait and see what happens here.