Last Night: Gold Price Survives Algo Attack To $1298

Frankfurt (Aug 31)  Euro-area inflation shows recovery on track, gasoline jumps to more than $2 a gallon, and a raft of economic data is due.  Yesterday we warned repeatedly of knee-jerk reaction moves after the rally and sell-off. The short term trading algo we use is quite relevant in chaotic markets and their immediate aftermath.

We even put on a position (pre alert) that called for a quick dump-swoop. Let that be a lesson to us.

Because hours after we were stopped out, the actual trigger hit, and Gold did indeed break hard for a brief moment after hitting the level Here it is at 11pm doing exactly as we thought.

These VBS alerts are our best tool in predicting stop fishing by spoofers. They are great for active markets that take a pause as Gold did.

MarketSlant