Yeah, this feel like one of those Fridays where you manage existing positions rather than add. That said, it's still early.
GLD traded right back to the open and reversed, easy money. I have a long bias on the intraday time frame.
Bonds up, euro down, ES down but no movement in gold (compared to last 2 days volatility). Seems the downmove is done and its time to buy. Edit: I mean downmove in Gold is done, and probably its a good time to start accumulating again.
You might have said the same thing though when it first confirmed the Monthly A down earlier this week. I wouldn't touch gold until we got the OR in January personally, but that's just me. Still two weeks left in the year, (two weekly OR's and 10 dailies). That's a lot of potential downside for something that's confirmed it's monthly.
The point made here prompts a question: Are traders in this forum most successful using ACD to make directional trades, or volatility trades? I see references to a "long bias" or "short bias", and I'm not clear if this refers to a uni-directional trade (pure long or short), or a spread trade that leans long or short but benefits from volatile price movement in either direction?
Thanks for your thoughts, very nice perspective. Further thinking it through, it seems to me that at least after today's action, relative weakness of gold has subsided. Probably, I will watch it for 3 more days, and if on relative basis, it does ok, I will buy it as a spread against something (maybe ES).
I think the latter part of the question would be directed to Maverick. He made a comment a few weeks ago about a spread trade being long volatility. To be honest I never thought of it that way. I always think of options etc. when I think of vol. Maybe he can expand on why spreading not Coke vs Pepsi, but using "outside the box" pairs is a vol trade.