Condolences To The Goldbugs

This morning’s gold setup already paid up in spates. I originally was hoping for a long breach but fortunately jumped on board when the shiny stuff breached through its diagonal support line. Let’s review what happened next:

Cowabunga!! I barely slipped in there when it literally slipped off the plate. Which goes to show that personal opinions do not matter – as a matter of fact they can harm your trades. The odds for a bounce here were rather strong and as Scott has preached here on many occasions – if something is supposed to happen but doesn’t then you can expect an even stronger move in the opposite direction.

Well, we knew this thing was coiling up but this is a lot more than I hoped for. I took partial profits after the first big candle down and kept a few lottery tickets into 1577 – and I’m out as that is quite enough damage for one day 😉

Since we’re talking gold let me throw this one in real quick. I do see a potential long setup here at that (still speculative) lower support line on the daily. The odds are 50/50 but I’m willing to throw in a few contracts if gold manages to hold 1574 through the close. If that diagonal gives then things may get really ugly and that fast. Damn, it really sucks to be a gold bug these days. How often have we played gold like a fiddle in the past year? I think the one reason why we’ve been able to make good calls is because we don’t give a rat’s rectum about it – way too much hype. You’ve got to approach those popular contracts with a bit of ambivalents – but don’t get arrogant or Mrs. Market will have your balls in a sling in no time! 😉

Did you take yesterday’s setup on cable? I did point out that there was significant resistance looming on the daily and lo and behold it made a b-line to the downside. Also taking profits here as that NLSL may be good for some support. Also the 100-hour BB on the left panel should lure in some dip buyers. Let’s see if we can flip for a long here but if the NLSL gives I’m probably slipping back into some shorts.

Good stuff waiting below – please step into my lair:

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Words To The Wise: Let’s have fun but keep it frosty. And I suggest you guys don’t over think this – I’m seeing plenty of fundamental discussions in the comment section and although I don’t want to discourage you guys from participating I wonder why there’s not more energy going in debating the setups I’m posting here. That YM trade yesterday was a great kick off for this week and today we got spoiled by gold. Even if all other trades we took would have been stopped out you would already be in the plus for this week and then some. Some food for thought – see you guys tomorrow morning bright eyed and bushy tailed.

Cheers,