Originally published by Chamber of Merchants
I’m getting a lot of feedback from traders who are jumpy at the thought of rate hikes etc.
(P.S I would be very anxious if I were not in gold miners. That’s the only thing which I believe is going to be stable for a while)
I’m in gold and the trend is confirmed.
(some traders jumped ship today thinking they’re selling on a top..on day 3!… they’ll have to buy back in more expensive later. Just go back to January and check the movement of miners and prices..Educate yourself before you get all weak-kneed.)
Overall what I want to share is that many traders in gold are becoming nervous now because they don’t want to lose their gains. As a Merchant I look at the losses the same why I look at the gains. These are not even gains yet. These are sparks of a future bonfire.
Remember if you celebrate every move up then you’re setting yourself up for an emotional melt down. I already said it: I am expecting a retracement down to $1285. If we don’t get it, fine. If we do get it, fine.
But don’t start thinking in straight lines now that there’s some movement. We have a long way to go yet.
On the other hand, if you’re not in gold, then you’re facing this:
VIX November 3rd 2016
A volatility index that is reaching Brexit levels. There will be no rebound or rally in the markets until there is certainty. And that won’t be for another week (or potentially weeks if Trump wins).
And remember, if your stock market index gets pulled down, everything usually gets pulled down (except precious metals).
It’s not different this time.
It’s exactly the same thing. Over and over again. The question is whether or not we’re going to start thinking clearly and feeling less so that we can engage in more successful transactions.
So whatever you’re holding, check how it behaved leading up to Brexit. Now assume it’s the same thing all over again as we lead up to the elections.
I, for one, am looking forward to a repeat of my last set of trades.
Don’t ignore the signs. Volatility is increasing.
Patience. It’s a muscle: exercise it.