The overall fundamental theme for gold is still bearish. With the dollar rallying and commodities being dollar denominated, all else being equal, the price of commodities should decrease. The market looks to be pricing in low inflation to come and gold is used as an inflationary hedge. This is a bearish fundamental factor.
What we saw last week was very opportunistic upward movement that is helping set up the much larger downward trend that I foresee coming. The cash injections from the ECB and China should be short lived as the market will once again see these central banking efforts will not have a large impact on global inflationary numbers. Let’s look at the charts to plan our trade.
How do you trade a market that slips further and further from a level that looked attractive before it was too late? It's going, going, gone... Or how about seeing those monster moves and saying to yourself, "market order now or I will miss it", and so you do, and then you get torn to shreds.
The question then is, how do you avoid missing a large move without getting your head ripped off in a reversal. The answer is simple, trade the way a professional trades and you won't get caught in any traps. A professional has a disciplined approach with a strategy that suits their own trading style and account size which allows those trades to come to them so they will never feel like they are missing anything.
If you are one of those who is unsure of their strategy and is currently sitting on the sidelines watching the e-mini S&P futures continue its grind higher consider this. You missed over 180 points in returns from a very simple fib strategy and the move might be coming to end soon.
Here is what you missed after we got the bounce on October 16th: 10 point stop for all