Is gold being accumulated or distributed right now. Have hit long term support while gold miners have and seemed to be bottoming out. Gold has been in a whipsaw for the past 3-4 days right at resistance line. To those that are very good with seeing accumulation/distribution based on volume and price, which one is it??
Note that when the heavy trading occurs, price is pushed back into the "range", e.g., April 24 and May 2. Similarly, when price makes an effort to exit the range, it's pulled back in, again on heavy volume.
currently target of gold actions are traders that expect price to go 1100 and lower. Price will go up until these people give up and buy/cover at much higher levels. So far they are resisting and this means up moves will continue. Ideally they remain in their cages, blinded so we actually see new highs. that would be lovely.
Actually, I am still short from Sept 2011, Gold has not closed above monthly pivot highs, so when I think mid term lows are in, I sell Puts and wait for a rise so I can sell more gold and hedge position and lift the Puts. Lots of rollovers.
GL with your plan. Isn't rolling over expensive exercise? You pay commission, spread and slippage. How does this compare to shorting gold on spot market ?
Since I have been trading long term commodities successfully since 1993 when I changed from going from a trend method original entry to how big brokerage trades them selling high/buying low, not had losing year. That's not to say all years are very good as usually two of three years am treading water, but thats how commodities are. Profits in many longer term method comes in cycles, when years markets are wildly trending, you can't add enough contracts at short term counter-trend extremes or what most people say retracements. Often times I think I have only done well cause I have a trading plan, and just throwing darts would work cause of having a plan. The only spot gold I do been buying gold coins since age 21 every month, sort of like a dollar cost averaging but didn't buy them as an investment, bought them in case one day the dollar is worthless and one day it might become this way cause of our debt. LOL, <<<You pay commission, spread and slippage>>> there is no free lunch anywhere that I know, am sure if I did on spot, there is something to pay there as well as in interest, commissions. Some of the contract months, I never change protective stops, cause as soon as I get breakeven stops, I never move them, even for some years.
he is hedging his long term short position? Anyways gold and silver looks promisingly bullish today. Broke through 5 days of congestion....Let's hope this holds.