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Commercial Member
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Joined Oct 2006
|1,158 Posts
after the FED statement last week ... every asset on the financial markets tended to reverse its trend.
my reading on that is that investors expected a more aggresive -hawkish- rethoric on economics and interest rates.
apparently they were expecting to reassure the market bottoming through an increase -although publicly the "forecast" was no change in the rates- of the value of the USD.
i dont rule out by now an aggresive retest of this year's bottom in the stock markets before year end along with USD strength -as it happend during the financial meltdown-.
after this FED decision gold -as a proxy for the antidollar sentiment- has had REALLY strange behaviours... i call them broadening price actions ...
in other words ... everytime during the day breaks the current day's high... just to go and break the lows... as a kind of broadening triangles and that sort of things.
the true risks are for the downside in gold ... imho for the next month at least before the next FED decision.
applied to trading means that i'd sell the rallies with wider stop-losses than buying the dips with very small ones.
i've been thinking of a way to help traders here and the analysis that i've been promising to post will look like a list of key price levels so ppl could find them as usefull as any other pivot point.