Not Enough Movement

HALF A PERCENT - Well...when you're not moving much more than a half a percent in either direction, there really isn't all that much to talk about. That's kind of how things went on Wednesday and that's kind of how things have been for several weeks now. But for quite some time, I had been looking to buy GOLD into a dip and late Tuesday that trade set up. I would say there is definitely room for this to potentially drop into the $1250 area. However, the greater risk from here is to the upside in my opinion and I believe before the year is out we could even see a fresh 2016 high. 

SOMETHING BUT NOT MUCH - The US Dollar has been strong but hasn't quite broken out, while US equities are faltering but haven't quite collapsed. It's all a little frustrating and it will be great when we finally get some overdue movement in FX and equities. For now, I'm just sitting back and watching and looking forward to seeing a bottom in GOLD over the coming sessions. It's worth noting that technically, GOLD is overextended on the daily chart, further supportive of the possibility for a bullish reversal around the corner. 

There is going to be a fantastic short play in $EURGBP soon. Via @joelkruger

STRATEGY - As far as other markets go, EURGBP is one that could be interesting. Technically, this is the only other market out there that is extended on a daily chart and to me, this is sending a signal that there could be a great opportunity to fade this rally and play into a very compelling short trade. There has been a lot of strength in recent trade from more Brexit overhang and uncertainty, but the market shouldn't forget about Deutsche Bank troubles and the systemic risk associated with the saga. I think the market has been way too aggressive buying EURGBP and I will be looking to sell.

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