Friday, May 4, 2012

gold stands out: focus on strength

Market got hammered today after NFP data but gold had already established a 3 touch TL that led to a massive spike on the data.

 But even if you missed that, you could have waited for the same pattern 2 more times, both yielding nice moves with less than 10 ticks heat.

/gc stood out because it was the only market that was green.

 Meanwhile, /cl got clobbered... all the way down to 97.50.  Despite being one of the worst markets, /cl set up way down there...  creating a similar 3 bump touch after a big volume candle at the low of the day.  That was also good for 70 ticks.

 So no matter what the market is doing, the same pattern can yield the same solid results. 

 Gold was the better choice since it was strong and you're going long.  With /cl -- one had to wait a long long time to even get a chance.  /tf also created the pattern but only rose 30 ticks and gave it all back.

 So when looking for the 3-bump symmetrical move... it's better to have a strong market on a strong day.


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