How our trades have progressed this week:
We are short Gold. We shorted at the red arrows. That is, we expect the price to go down. If Gold goes down in price we gain. It is always difficult to find the best price and often it is simply ‘good is good enough’. But our first take here seemed excellent. Price this week had risen giving us a chance to add to our short. Again, this seems to be at a near top. We now have a lower high (the difference in height between the first and second arrow) and, therefore, the possibility of a continued drop in the price of gold, at least for a few weeks.
We went long USD/CAD at the blue arrow. That is we want the price to increase. Our strategy starts with a major trend reversal, and that is often a difficult call. Probability of success is low at this stage, but reward, if it goes our way (up), is worth a trade. Our target is near the top of the screen shot.
We first took Silver short at the left red arrow. Price went nicely our way – down. This week, however, has seen a good recovery in price. We entered again, short, at the second red arrow. This is a higher high – often not ideal for a short – but the three pushes up is good context for a trend reversal. From being nicely in the money, to out of the money, is part and parcel of our strategy. We hold until something tells us different, or until we get to, or near, our target. Our target is at the bottom of the screen shot.
We shorted Copper at the red arrow position. That is we want the price to go down, and so far, Copper has obliged. We continue to hold until target. The recent retrace in price this week was not sufficient for us to add to our short trade.