Traders should know that ‘the game’ of trading is not built in their favor. Volatility is not an advantage unless you know how to survive in the marketplace. Meaning you need deeper pockets and your risk management must be top gear. Gold serves as a perfect example to this. As of this morning, Gold is trading near 1217.00 USD.
After testing support levels most of last week, the precious metal did find takers, however after the brief run up gold found that pressure soon followed again. The whipsaw action certainly caused those who did not have the ability to handle the rollercoaster losses if they were unfortunate enough to get caught in a sudden trend and with time parameters working against them. Having said that, gold remains in a bear market and traders who have the ability to test support levels can find opportunity. But be careful friends.
Geo-political problems continue to be ever present too. Hong Kong has been in the news all weekend with street protests and the demonstrations do not appear ready to stop. China will certainly keep a stern eye on the developments and investors will watch the circumstances closely.
This week we will see the Non-Farm Employment Change numbers on Friday from the States. Last week it must be noted that the Core Durable Goods Orders proved earthbound from the States with a thud, missing their target. Japan has extended its lackluster reports without any signs of proper growth. The USD has remained rather strong, but after a very strong September can the Greenback keep its momentum going in October?
The EUR is trading near support levels, but some FX traders may consider these values interesting and oversold. It should be written that German Retail Sales did come in better than expected this morning, but the results must be weighed against what has been a steady stream of poor economic data from Germany and the rest of Europe.
The CB Consumer Confidence reading will come from the States later today. Wall Street is near its record levels as debates rage about what will come in the months ahead regarding values.