Gold Market Wire
News, analysis and commentary for gold traders and investors
Precious Metals Update
Metals Continue to Hold Strength as Equities Get Sold Again
October 12, 2021 - (Gold Market Wire) - There can be little doubt that the essence of trading is the ability to call the tempo of the market - in all of its rhythmic and a-rhythmic variations. When you can feel the tempo (not just count it - like with an algo) you can get a sense of what the market is up to. This is the magical, secret, 'sauce' that all trading outfits look for in their traders: the sense of having a feel for the market. No amount of intelligence can give you feel; although experience does seem to help. Also, for many people, years of experience does nothing, as the same mistakes (like chasing strength, or "marrying the trade") are made over and over, until the run out of money. Trading deals hard life-lessons. It is worth remembering, that for every great trader out there who has made solid money, or even big money, over the years - there are dozens more who blew up in smoke and ashes. The sad fact remains, most people lose money when trading. And that makes a great deal of sense. After all, if it were easy, everyone would be doing it. Investing is a bit easier than trading, but the returns are usually smaller. Of course everyone can point to a FAANG stock and say - 'see all you had to do was buy and hold''; but most people who have bagged 50% in a year on some wonder stock sell and take profit.
Much of what we write about here at GMW is to try and capture the feel of what a market is doing, and in our last missive we opined that we felt a change was afoot. Namely, that equities continued to be under pressure, but it was no longer feeding through to the metals. Today's action is supporting that thesis, (although we remain concerned that a truly massive hit to equities could damage that plan). The German market, rocked by some fairly bad sentiment index news today, continues to come under pressure:
But the Metals are holding fast. So fast, it appears that Gold may even be preparing to charge. That is the change in tempo that we referred to last week, and it is noteworthy. We could be at a crossroads.
...it's all about the changing tempo of the market, and our mission, as traders, is to recognize it.