Fx BBQ: Gold, an accident waiting to happen?

Monday, January 15, 2007

Gold, an accident waiting to happen?

Gold & Copper had tracked each other with good historical correlations, the Weekly 21 & 50 ma's had supported all corrections for the rise from their 2002 major lows..
While Copper had broke below 21 & 50 week ma from last year's high, Gold has managed to stay above 21 & 50 ma with decending highs..
is Gold waiting for a Copper correction or an accident waiting to happen below the converging 21 & 50 ma clusters? underlying market dynamics points to an accident..

Gold & Copper weeklies (click to enlarge)

Labels: gold

2 Comments:

At 2:17 AM, Russmosis said...: Great analysis and trully unique perspectives. However it begs the question... as in your currency analysis, why do you choose to benchmark that which is of greater value/importance against something of less relevance? I would think the market tells us otherwise!?

Thanks for the input! Always enjoy reding your FF contributions...
At 11:35 PM, Gecko said...: thanks for the input Rugo.. imo value/importance are biased and irrelevant in clinical benchmarking historical correlations..

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Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytics & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band inorder to compensate for those times when we are wrong..

Fx BBQ

Monday, January 15, 2007

Gold, an accident waiting to happen?

2 Comments:

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