The major stock indices continued their relentless rally this week...and I got myself into a frustrating trader’s dilemma. It’s funny now...and I’m sure any traders reading this will be thinking, “Yep...been there...done that,” but it sure wasn’t funny while it was happening!
Latest Trading Desk Notes
Dramatic market price action on Tuesday evening Jan 7/2020 created important Pivot points across a number of key markets...especially gold. Look at it this way...gold rallied ~$125 in 9 days leading up to and including Jan 7...it rallied ~$40 in the last 1 ½ hours to hit a 6 ½ year high at $1,613 (basis Feb Comex)...and then tumbled ~$70 in just over 24 hours.
Can we “trust” price action during low-volume holiday markets? That’s a tricky question...my best answer is that low-volume holiday markets are usually less “valuable” than regular markets in terms of “validating” price action.