The market is not concerned with the actions of day traders. Day to day movements represents nothing more than non-actionable trend “noise”. The concentration of capital, i.e. bullish or bearish setups by specific players, is useful information. They tend to identify actionable consolidations within the secular trend. For example, bullish setups often reveal the execution of paper operations within the secular gold advance. These operations offer new and existing buyers a chance buy the dips.
Regards,
Eric
Dear Sir, Would you be willing to answer this email or comment on my question in your blog?
In this last few days when the gold price went off by 50 points, what did all those sellers (whom, I presume, were the actors who caused the price to fall--maybe I am even wrong about this simple fact) do with the money they got for their gold interests? Are they mostly people who are like day traders, constantly jumping in and out of things, making a quarter of per cent. per transaction? I think this is the type of data you try to offer, but, often, it is in charts that I have trouble understanding. Nonetheless, what I can understand of your blog seems well-reasoned and well-informed. Thanks. S. Petersen.
