Thursday, February 9, 2012

Coming Up With Baloney

Here are a couple of paragraphs from Dan Norcini. I like his honesty regarding the markets. As a trader of note, even he is befuddled with trying to comment on the market action for gold. I guess the best way to 'play' this market is just to have some physical metals in your name....somewhere safe, and wait till all the shenanigans are over.

"Trying to get a decent read on many of these markets is very challenging in this environment because there is an enormous tug of war from both the forces of deflation and the forces of liquidity. That has many traders sitting with their finger on the keyboard ready to run in either direction very quickly as what remains of conviction is generally easily swayed based on the latest headline or data release. The end result is that day traders are more at home rather than trend following systems which can easily be whipsawed and caught flatfooted.

On days like this I actually feel a bit sorry for the many newsletter writers who have to come up with some sort of baloney to explain price action in order to justify their subscription fees. Truth be told, sometimes there are just "a lot of fuss about nothing" days in the market when neither side (bulls or bears) really seems to have a clear edge and the markets end up marking time. This is the sort of environment which produces choppy trading patterns where floor locals make the majority of their income scalping or otherwise generally separating novice traders from their wealth."

Gold in New Zealand dollars: $2078.30 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.71 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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