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Thursday, December 2, 2010

Airelon's Challenge Chronicles 2.8: Another Possibility?

You can find a description of "Airelon's Challenge Chronicles" by clicking here.

The markets continue to evolve. I was thinking that I wouldn't be trading again, as I usually taper off my investing and trading efforts as the week draws to a close. However, I pulled up a chart of Gold, and decided to set an alert at 1387.10 ... in line with my previous bias. If that alert trips off, then I'll take a look at reading the tape, and see if another trade is in the works. If the market continues past 1391, then I'll probably cancel the alert.

Edit: 8:55 pm est - We broke above 1391, but new congestion has formed between 1393.50 and 1391.50. I might continue to monitor this, and see if a new pattern emerges that I can make this play on. The main problem at this late hour, is the lack of volume on the mini; which would also cause me to scratch this trade ... unless that volume picks up.

Edit: 10:01 pm est - Nah, forget it. It's way to thin, there is support at 1390, and I'm beat. Again, I will look to start going through my metrics, and trying to find other markets with trends that I might be able to exploit.

Edit: We'd have to break clearly with a good tape, and volume picking up below 1390 for me to take this trade. And I'd have to be awake for it ... We'll see ...

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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