Seven Nation Army…and Gold

OK.  I know.  The Euro actually includes 17 member nations, but it’s a great tune.  Hell, the EU might become a Seven Nation Army by the time this is all done.  And dammit I wish this would all get done.

I’ve been trading less this fall for a variety of reasons.  But suffice it to say, the markets are stuck and have been making moves based on rumors that add a kind of “surprise” factor that the VIX doesn’t seem to capture.

In the end, I think all currencies will be lower, and gold will be higher.  When that is yet we don’t know.  But after this latest test of the recent highs in the dollar, I am willing to start nibbling in gold miners again.

It’s interesting that we have a swing low in the dollar after nearly matching the highs set back in very early 2010.  I’ve also snapped on a Fibonacci extension that works from the last major swing low in August.  The confluence of resistance up there is what I am “leaning” against here.

Gold, likewise, is testing a possible “extreme” level on the downside.  It’s now posted a swing low which matches up with lows in September and highs in May.

So, I am taking an initial shot here on the long side using GDX as my proxy.  If this turns out to be the 3-year high in the dollar, we may be heading for $20 loaves of bread soon and I want gold in the mix to help offset a loss in buying power.

Also a note of interest – Tastytrade is a very cool new service that provides a wealth of education and deals on financial products.  I’m linking it here but will also add to the permanent list on the right column here ———–>

Check it out.  Tom Sosnoff is one of the best around.

Have a good weekend and trade the extremes always!

 

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About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
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