Monday, April 22, 2013

Metals: Gold, Bear Trap?


Bear Trap? There is considerable accumulation on the 89 period Chaiken Money Flow (CMF). No investor wants to buy high. So, HFT firms play hot potato shorting the stock to get it into acceptable long entry levels; they then make money both ways.. The event in metals futures was just like the S&P Futures event in 2010. The order overloaded the system: 75,000 E-mini S&P 500 contracts in one sale initiated that event; the gold contract is 100 oz., so as 100 metric tonnes goes across the tape, an event like last Monday happens.

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