Gold has been in truth falling like a rock, however some folks have been buying on all the little selling climax's along the way.
The stop losses have been busted, the margin calls made. On each dip below $150 folks have been buying (or maybe short covering). Now implied volatility is rising this suggest that a move is coming. When implied volatility rises this means premiums rise, premiums rise because in the future volatility is expected to increase (yeah a loop in logic feeding on itself). The reader is aware of the massive short positions used to push down gold, therefore a short covering rally could be very aggressive move higher. The option boys know this, hence implied volatility increase. Tic tic, watching and waiting.
Investing Quote...
.."I believe that uncontrolled basic emotions are the true and deadly enemy of the speculator. That hope, fear, and greed is always present, these emotions sit on the edge of the psyche, waiting on the sidelines, waiting to jump into the action."..
- Jesse Livermore
.."Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs"..
- George Soros
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