goldseek.com / By Scott Pluschau / May 25, 2012
Let me start by saying I completely understand that there are valid reasons to buy gold for the long term as insurance and for savings. I also don’t make trading decisions based on fundamental analysis.
Futures trade in a two way auction. Price is determined only by whatever amount someone is willing to bid or offer at a given moment. This is the truth. If the fundamentals are bullish, and the auction is bullish, a good trader is only going to be on one side of the trade, the right side. But if the auction is bearish what good are fundamentals? An Auction Market Analyst knows that the fundamentals will come out eventually, but by the time the “experts” have it right and are “genius” with the explanations after a move happens, the damage has been done unfortunately. An auction market analyst should never need anyone else’s opinion for confirmation. The confirmations are on the chart.
Thanks to BrotherJohnF