Thursday, July 7, 2016

#Gold Is Either Focused Bull or Bear Opp or Consolidation/Profit-Taking Against It

Traders, especially those of trading large account, never discuss their positions (for free) unless they're inexperienced or looking to unload or build an opposite position without affecting price. The message of the market says gold is either in a focused bull or bear opportunity, or consolidation/profit-taking (CP) against it (see COT Matrix). That's it.

A focused bull opp is generally followed by CP against it; C/Ps often leads transitions to focused bear opps. Bulls that refuse to tighten risk management or lighten their load as price rise or the trend transitions to C/P are pigs. Bulls and bears make money while pigs get slaughtered.

Headline: Gold is an 'extremely crowded trade' and is heading lower, trader says

While gold (CEC:Commodities Exchange Centre: @GC.1) is on a tear higher right now, that will soon change, the founder of predicted Wednesday.

That's because gold is acting as a currency and once the "hysteria slows," it will return to acting like a commodity, James Cordier told CNBC's "Closing Bell."



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