Tuesday, June 23, 2009


Gold may not move up boldly today or tonight, but
tomorrow at 11:15pm pdst, when the FOMC statement
comes out, the market will go ballistic in both directions as
it has after every FOMC meeting in the recent past.
It is NOT a time for beginners to trade the market, but
for those who are well versed in how this market trades in
the last five years, they 'might' have a chance to score big...
IF.... they are lightening fast with the sell button if they have
a long position established near the recent lows.
Those like myself who are stuck in a long position above this area,
might be able to get out of it on the sudden spike that should occur
when the FOMC statement comes out tomorrow.
MARKET ORDERS are extremely DANGEROUS during that period
as gold can fly up and down many dollars in a flash and you could get
filled far away from where you intended to get in and panic when the
market drops drastically on you (if you are going long).
NO ONE should be SHORTING gold now or ever. It's just too risky,
as all it takes is one exogenous event to explode gold to highs you won't
be able to believe can happen.
If you are already long, you should place a REASONABLE LIMIT order
where you think/hope gold could go.
If gold doesn't hit your order on the first up move, it could do it on the
second pulse...BUT...be sure to CANCEL your order before try to get out
with any other order, or you could be double filled and get in a real mess
as the markets bounces up and down whiplashing the uneducated traders
who don't know what a market can do in extreme volatility.
Gold will show us more tonight and tomorrow before the FOMC statement
arrives about what direction it will be taking.