Gold is Back in Play - Barrick Gold Corporation (USA) (Public, NYSE:ABX)

My SU short (stop out from yesterday), fired off on the open. As you can see from the chart, the weak uptrend was broken on the first stick. The straight blue line was early resistance yesterday, and then acted as support later on. So I wanted to short below the blue line but as close to it as possible.

I drew in the fibs. from the ORH to the early swing low to give me a target. I held into crude inventories at 10:30 with a stop just above $25.00.

FED Trade

Most of my FED day trades are focused on the QQQQ and gold. Why gold? As a general observation, interest rate cuts are bad for the $USD and gold usually rallies off of a weak dollar. I wasn't expecting a rate cut, but Big Ben said on 60 Minutes this weekend, that the FED would do whatever it takes to save the economy. Little did we know what tricks he had up his sleeve.

Anyway, this trade is setup before 2:15 with buy/sell stop orders on either side of the blue/red lines. If the BO is lame with lots long shadows, take some off, or abort the trade. Also, check UUP for a reading on $USD but don't trade it because there's no liquidity. I didn't even bother with the Qs today because gold was euphoric.

BTW, this setup is called "Gambling". If you are risk averse, don't trade the FED.



I'll post the charts for $USD and gold in tonight's Technical Picture.