The Gold market experienced a dramatic correction this week. (Ending 7/27) The Stock Market has enjoyed trading on its all time highs recently. However with recent reports indicating a slump in the housing sector it sent concerns that the economy was peaking and the Stock Market may be over bought. This caused a frantic sell-off causing the Stock Market to lose 2 plus percent over a three trading day period.
The drop in the Stock Market caused many traders both professional and independent to liquidate their long Gold positions and transfer the funds into their Stock accounts to protect their margins. The Gold community has enjoyed a $45.50 increase from $642.50(June 27th) to $688.00 (July 24th) and after a mass sell off has given over 50 % of that gain back in only three consecutive trading sessions.
Fellow Gold traders have seen this before. This is why I have tried to share my trading strategies with the followers of Commodity Trader. Com. I believe the best option for trading gold is to trade using spread strategies. I have Bullish spreads on at present and although the last few days took from profits I am still in the market. If I had unprotected long futures or option positions there is a very strong possibility I would had to liquidate.
Gold traders keep your chin up! I believe as do many other traders the Gold market will rebound. It will take a while for the dust from the Stock Market to settle. The last time the Gold tumbled it was also do to over bought Stock Markets (ASIA)
Good traders do their research, use stop loss orders, and learn from your mistakes.
Remember “the market is always right”…I have a limited supply of FREE option strategies booklets…
There are risks trading futures and options…..
Manduca Trading, LLC
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