It’s crucial for me as an independent trader to know when to be in the game and when to sit on the sidelines. Taking high-probability trades significantly increases my chances of survival while active trading in the market with low predictability threatens to bleed my account to death despite the proper risk management.
The current market conditions don’t favor directional trades in Gold. Experienced option traders may consider range bound directional neutral strategies (long butterflies, long condors).
Wednesday, March 12, 2014
Disclosure: I am long SLW calls.
Sunday, March 2, 2014
Sunday, February 23, 2014
equityclock.com shows that the Exploration & Production industry enters the most favorable period in March-April and we might expect the upside breakout from the three-month consolidation on the XOP chart.
Monday, February 17, 2014
Saturday, February 8, 2014
my last update the Gold ETF (GLD) has broken from the Raff Regression Channel to the upside but is still continuing to battle against the resistance at 122. The volatility, meanwhile, collapsed to the level not seen from the last February (lower pane). It foreshadows a strong directional move. Though it is impossible to say in which direction this move will occur, the momentum (higher pane) and the upside volume (short horizon P&F chart below) favor the upside breakout.