I day trade gold, but I see an opportunity for a swing trade on the long side. A pop up through the middle of the week and possibly the whole week. Long GLD at 116.50 (if it gets there) and a stop set below 115.50. Profit target is discretionary. Let's see what happens!
I still have the Q contract on my screen, but will probably go with what is most active. Yes, definitely the Z...they won't allow the Q anyway. Just set a stop limit order for long ...if it gets there...for a day trade.
I see gold going down medium term possibly. I still invest and prefer precious metals as a long holding going into the end of this year ...and 2019. We'll see.
Interesting. I've never used "retail" to determine sentiment in gold. Always looked at the commercials vs. the large speculators. Currently, the large specs are holding massive short positions...they're usually on the wrong side.
From what I understand there's usually been more long positions than short positions through every kind of market. What everyone watches is how short positions go from heavy to light. Sure, long positions change too, but there's always a certain percentage held...do to hedging purposes I believe. Right now, the large specs (hedge funds) are short more heavily than usual.
Yes, I could see that for short term signals, but what about a month or two out...or longer? The COT combined with some TA can be enough for a monthly position trade. Many times these hedge funds get caught on the wrong side and now we have a short squeeze for example that can last for awhile. I see it over and over every year. Personally, for day trading I don't need any currency data...never have. If it works for you that's awesome.
