As you know I have been tracking gold again recently for a variety of reasons. Its close correlation with movements in the USD/JPY are worth noting but it’s also exhibiting price behavior indicative of a possible low. So the obvious questions that needs to be addressed is whether or not a medium term low in gold may have been reached and if it makes sense to start accumulating long positions.
Quite often the difference between a profitable month and a losing one lies in not being drawn into low probability campaigns and obvious retail traps. I’m pretty sure most of you would agree that I don’t pad my own shoulder often here. But when I actually do it’s not for a campaign that turned into a big winner but one that looked good on the surface and I cautioned you against taking.
That’s pretty much how trading equities has felt over the past two months or so. I’m not one to complain and obviously am always on the hunt for promising looking setups across other market verticals. What seems to drive most of the blog traffic is related to stocks and bonds however and the personal hell I’ve built for myself is one where I have to find something interesting to say about a sector that often simply spends extended periods going absolutely nowhere. Or in other words: summer tape.
How far we have come over the past few years whilst getting absolutely nowhere. I mused just yesterday that it feels like as if we are living in one giant economic, cultural, and social bubble in dire need of a needle. Everywhere I look I see nothing but rapid inflation and boundless exuberance. What once may have been a slow and barely perceivable progression into an utopian brave new world, where nothing matters and everything carries a price tag, has at this point become utterly pervasive and is now rapidly making its way into all aspects of our personal and professional lives. But the most recent and increasingly bothersome symptom of what I deem to be a de facto generational [...]