History Repeats....
I want you to look at those two charts below. Sentiment is not quite as extreme as back then when the EUR/USD took off for 400 pips the other way of most traders positions but it is close. Real close. Take a look at the pattern in both the EURO at that time and GOLD today. Do you see any resemblances at all. Of course you do. You would be blind or stupid to say otherwise. Do you see how price action dictates lower hick up lows and small movements down in the EUR/USD at that time? Do you see GOLD today?
You have to know why that price action happens. It is because there are too many shorts and not enough longs so there is an imbalance even though fundamentals favor the continued move. I am long GOLD today folks going into the FOMC. A smaller position but never the less long. I expect the same sort of surprise when everyone thinks a sure thing is going to happen. If I am wrong I don't lose much but if I am right I make out very well.
You likely won't hear this from anyone else out there. So if you want to know how to trade then follow the ones who know. Cheers!
You have to know why that price action happens. It is because there are too many shorts and not enough longs so there is an imbalance even though fundamentals favor the continued move. I am long GOLD today folks going into the FOMC. A smaller position but never the less long. I expect the same sort of surprise when everyone thinks a sure thing is going to happen. If I am wrong I don't lose much but if I am right I make out very well.
You likely won't hear this from anyone else out there. So if you want to know how to trade then follow the ones who know. Cheers!
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