GOLD MORE BUYS? - Maybe Not Yet - Destroy buyers FIRST!
Given that gold would have bought really aggressively yesterday after destroying sellers at the previous high, I believe the dealer needs to take the opposite side of things temporarily.
What I mean by this is that the dealer needs to worry about traders who now ACTUALLY have the direction correct (BUY)
In a bull market buyers WILL win if they can get their entries right OR they have enough patience to endure a lot of drawdown. The dealer knows this and in a bull market - BUYERS will always be a problem for the dealer (the opposite holds to be true in a bear market about sellers). That being said - it makes sense (in my opinion) to not only induce buyers now but to get rid of them as well and even get some sellers on board because if the dealer had enough liquidity to buy the market, guess what - that is exactly what he'd be doing
Exhibit A - The bull move from yesterday
That being said - I think it makes sense for the dealer to drive price a bit bearish at this point so that he can now build liquidity out of thin air by not only getting sellers back on board within this gold market but by also getting rid of buyers who had less than ideal stops along the bull move of yesterday
Continuing to look for buys at this point would be dangerous (in my opinion) as it is not only NOT bullish enough to facilitate buys but it isn't buying at all as of the time of me writing this
Personally I'd like to see price drop a bit more before considering more buys
What do you think?
Downvote\don't boost if you didn't read\listen to this entire post and don't understand
OR
Upvote\boost if you did read\listen to this entire post and do understand
What I mean by this is that the dealer needs to worry about traders who now ACTUALLY have the direction correct (BUY)
In a bull market buyers WILL win if they can get their entries right OR they have enough patience to endure a lot of drawdown. The dealer knows this and in a bull market - BUYERS will always be a problem for the dealer (the opposite holds to be true in a bear market about sellers). That being said - it makes sense (in my opinion) to not only induce buyers now but to get rid of them as well and even get some sellers on board because if the dealer had enough liquidity to buy the market, guess what - that is exactly what he'd be doing
Exhibit A - The bull move from yesterday
That being said - I think it makes sense for the dealer to drive price a bit bearish at this point so that he can now build liquidity out of thin air by not only getting sellers back on board within this gold market but by also getting rid of buyers who had less than ideal stops along the bull move of yesterday
Continuing to look for buys at this point would be dangerous (in my opinion) as it is not only NOT bullish enough to facilitate buys but it isn't buying at all as of the time of me writing this
Personally I'd like to see price drop a bit more before considering more buys
What do you think?
Downvote\don't boost if you didn't read\listen to this entire post and don't understand
OR
Upvote\boost if you did read\listen to this entire post and do understand
