Is gold ready for a reversal? Some thoughts how to trade a bottom in gold.

Quite a recovery Thursday from the Wednesday drop in the Stock Market. This morning it looks like the stock market is taking a breather off about 1/4%.
 
Metals, Oil and TLT positive, while financials are negative. Also something new this morning with the U.S. dollar off about 1/5th %
 
To me, this looks like a neutral premarket.
 
If you are a swing trader you are probably pulling your hair out at this point. The good news is if you can survive in this environment you will have passed the test of being a successful trader.
 
It is very similar to wagering on baseball every day for the entire season:) If you make it with your sanity and some money in your pocket you have done what only a small % of sports bettors can do:)
 
Not much on the news front this morning. A quiet Friday morning for a change. With no news and a neutral open, I suspect we get a boring range day today. For many, this will give them a chance to catch their breath.
 
One bottom reversal trade I am watching is GLD. Gold has taken a historic beat down. When we get a reversal to the upside it could be a big one.
 
The problem right now with this trade is that its best to wait until a retest rather than jumping in trying to catch the bottom.
 
If we wait for a retest, we are likely weeks or months away from this trade. You can shade this a bit by using the 244 min chart along with the 60 min chart. This can give you some very good entries that you might now discover on daily charts.
 
I will be watching all 3:)
 

If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.

It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)

Good Luck Today

RickJ

RickJ’s Handicapping Picks

https://rickjshandicappingpicks.com/investing

Skype: Ricca

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