Thursday, 8 October 2009

Short Gold Trade Stopped Out, Going Long

Just got stopped out of my short gold bullion trade on this powerful rally. These things happen. Not every trade makes money. Capital preservation is key, which is why I use stops and control position size. As I noted in a comment to Friday's post, I might now look at going long in a discretionary trade since bullion is acting with exceptional strength against the usual historical trend that the data has seen in the past.
UPDATE, 12:25 p.m.: Just went long gold bullion as it broke out above weekly and daily TDST resistance lines.

5 comments:

Joseph said...

would love to see what your thoughts are after yo get the data for next week reg BKX and the SnP. These folks report Earnings: 10/12 GS 10/14 C and JPM 10/15 BAC

If they report good data the market will hit its 1100 and DOW 10k OIL needs to participate as well

Thanks
Joe

pph said...

I'm curious if you've done any backtesting to see if this strategy has any validity?

Paul

Alex Roslin said...

Hi Paul,

Thanks for your question. You might want to check out my FAQs page (which has a long section on my backtesting) and the backtesting results table on my latest signals and backtesting page, which gives lots of details about the measures of robustness and validity.

Regards,
Alex

In Debt We Trust said...

Bernanke talked the dollar up this morning. It would be nice to see markets take a little off the top here. A 5 day long rally in the middle of a normal week is a little too much.

Still, I expect to see gold go up again next week.

In Debt We Trust said...

Oh my god. I don't follow the Nasdaq that often but just realized that BIDU, GOOG, AMZN, PCLN, etc. are all in a bubble.

For ex., BIDU +60 pts in 1 week. Or a new 52 week high every day.

It would be interesting to see what your COT charts say about equities.