Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Chart Outlook.
August 7, 2023 - (Gold Market Wire) - Today's chart looks a mess - but is actually straight-forward. We draw the uptrend to two points, and we have a power downtrend and the main one. Let's see if we can abate the power downtrend. That will be the first order of business.
If anything we can see a lot of the market begging for 'peace' on multiple fronts over the next few weeks. The trading community would probably like a quiet August holiday period before the witching season of late-August to October comes rolling around... with all the world predicting an equity bomb-out that should take the Gold price lower. That should make us stay close to the charts. From the trading book perspective a good ripping sell-off in Q3 would be just what the Doctor ordered, to load the boat again.
Lest we forget our perennial reminders - this is August. People go on vacation/holiday and the locals try and run the market around, because then they can have a merry Christmas. Their footprints on Friday were signs of early 'frolicking', as their desire to make money by ripping the market up and down is well known. Only a feisty contrarian should feast in these waters. (pro tip: you have to buy the big move down, having properly identified it....be prepared for the whipsaw that ensues... and make sure you don't get greedy, and sell as soon as you've made a bunch. It's not as easy as it looks - but if you keep an honest journal/log during the period - you'd probably learn a hell of a lot about trading ...and yourself.
If you want to hold on to positions in tree shaking season - size them right. Don't be wide awake on you phone all night at some expensive beach house you rented because you couldn't scale down properly. Yes most traders' heart attacks are preventable...via professionalism, discipline and willingness to make small sacrifices to position size so that body and soul may rest.