Hello Friends,
Today I'm looking to take advantage of an insightful correlation spotted by Paul Mylchreest where huge moves in the Nikkei and in Gold occur during or subsequent to BoJ policy meetings. (See below for link)
Paul noted that since Feb or Oct 2012, the Nikkei surges and Gold gets sold off significantly after BoJ meetings. The next one occurs right about now, Dec 18 & Dec 19. (www.boj.or.jp/en/mop...sche_minu/index.htm/)
As reported and charted by Zerohedge, short selling in Gold tends to occur around 0030 Eastern Time, and repeated itself for about 5 days during the last instance (30 Oct 2014 to 5 Nov 2014 - note there was a weekend wedged in there).
Looking at the charts, I think the sell-offs actually start a little earlier around 2200 Eastern Time the previous day. Noting this, I have highlighted a pinkish translucent box on the chart to mark out this timeframe. This will provide a backdrop for me to go short IF and only IF I can find technical levels to do so. One possible level I would WATCH is the 38.2 retracement level from the previous swing down. If the price action confirms that resistance is found at that level, I will be more inclined to short the market. Note that this level also find confluence with the P-Pivot for the day. Use of trendlines to guide entries will of course be incorporated as well.
So once more, note down this time period and watch for unusual activity/volume. If Technicals on are your side, give the market a SHORT.
All the best.
For the full article, please click here: www.gata.org/files/F...eest-Nikkei-Gold.pdf
Today I'm looking to take advantage of an insightful correlation spotted by Paul Mylchreest where huge moves in the Nikkei and in Gold occur during or subsequent to BoJ policy meetings. (See below for link)
Paul noted that since Feb or Oct 2012, the Nikkei surges and Gold gets sold off significantly after BoJ meetings. The next one occurs right about now, Dec 18 & Dec 19. (www.boj.or.jp/en/mop...sche_minu/index.htm/)
As reported and charted by Zerohedge, short selling in Gold tends to occur around 0030 Eastern Time, and repeated itself for about 5 days during the last instance (30 Oct 2014 to 5 Nov 2014 - note there was a weekend wedged in there).
Looking at the charts, I think the sell-offs actually start a little earlier around 2200 Eastern Time the previous day. Noting this, I have highlighted a pinkish translucent box on the chart to mark out this timeframe. This will provide a backdrop for me to go short IF and only IF I can find technical levels to do so. One possible level I would WATCH is the 38.2 retracement level from the previous swing down. If the price action confirms that resistance is found at that level, I will be more inclined to short the market. Note that this level also find confluence with the P-Pivot for the day. Use of trendlines to guide entries will of course be incorporated as well.
So once more, note down this time period and watch for unusual activity/volume. If Technicals on are your side, give the market a SHORT.
All the best.
For the full article, please click here: www.gata.org/files/F...eest-Nikkei-Gold.pdf