Technical Read: First is the correction. Last comment, I showed the previous “eL” (exit long) on the graph occurring on June 19th (correct) but in the text I erroneously dated it as June 17th (incorrect). Be advised the exit was on the 19th. The “L” (buy) was on June 5th (this was a good trade). So far the exit long signal (Flatland) has been good, as volatility has been bleeding out of the market. Missing this is positive as it can cause option positions to have premium decay. This week’s trading has also featured something else: a lack of selling. As we go into Friday (typically the Bull’s friend) it will be interesting to see if buying picks up or not.
What is next now? The Iraq quasi civil war is now a known event (thus no longer a surprise) and the gold market has factored it in. Early stage conflicts normally feature escalation and this appears to be happening with reports of Iran sending military advisors in and Syria employing airstrikes to support ISIS. Kerry (speaking from the safety of Brussels) advised for regional participants to insure “that nothing takes place” that could act as a flash point for further sectarian division. The unrest is limiting selling in the gold market as bears do not wish to be caught short should something happen.