As you may be aware if you subscribe to the free Business Opportunities Email Newsletter, I have recently started a spread betting experiment, resurrecting my account with Finspreads.
My last trading exploits ended disappointingly in early 2004 when I decided to cash out the 10% or so I had left of my capital.
However, I have been receiving both emails and text messages every morning from Finspreads ever since. They contain news and views on the trading day ahead as well as market prices.
To be completely honest, I almost never read them. I really should unsubscribe and have only stayed on the list as they are free…
For the first time though in over 3 years of getting these alerts, I got an email this afternoon from Sandy Jadeja about a:
“Possible Opportunity in December Gold”
Sandy Jadeja is a Chief Market Analyst according to the email, although it doesn’t state that it is for Finspreads.
His email states:
“I have been watching the December contract for Gold and noticed that it has risen 12.18% in just 23 trading sessions.However considering that the metal had declined 25% from its May $753 high to a low of $563 in October, the trend has clearly been down. With the recent short term rally of this low, Gold has traced out a corrective ABCD pattern right into resistance at $625 -30If this level holds the metal back then Gold may drop down to support at $613 or lower to $602. Otherwise a move higher may see Gold trade to its next resistance level at $642 -44"
On reading this email, I’m not too sure what he is trying to tell me. Is Gold going up or down?
Who knows…
If the trend is down, should I be short Gold now? I can tell you that I’m not.
A successful trader once wrote that a market is never too high to go higher and never too low to go lower (although if a market goes to zero it can’t go lower!)
All I know about Gold is that it is at around $621/oz as I write.
We will have to see how it goes from here but I have a feeling that Mr Jadeja is trying to tell me to go short on the December Gold contract. This contract expires on the 27th November so I will report back after trading has finished on that day.