Now that the Thanksgiving holiday is over and we're entering December, traders should take extra care. Historically markets can move rather dramatically in December as trading volume thins out when traders start closing down their trading mindset and move out of the markets and into holiday mode. You do not want to start swinging for the fences to try to make your year in December, the odds are against you.
In addition to looking at the markets in general today, I'm going to take an in-depth look at the gold market. Everyone seems to be bearish on gold and what I have noticed over my trading career is that when everyone feels the same way about a market and is on one side of the trade, watch out!
That is the way the mood is right now for gold and there could be a sharp reversal as the shorts, that is the folks who sold gold short hoping to buy it back at a lower price, scramble to cover (buy back) their short positions. Continue reading "Big Moves Can Start When You Least Expect Them"