Pailin's Trading Corner

also one could buy ZSL and GLL in small amounts at large spike ups in metal. This cushions the waterfalls and acts as a kind of anti-depressant medication when inevitably the attacks come.

same with small amounts of  DUST after a big expansion day in GDX. GDX rarely has enough stamina to followthru the following day imo especially if it gaps up on the 2nd morning.

J. Corsi interview on Jones show interesting

says O. has little time left and there is a big bank scandal brewing inside the White house itself

I think Corsi is way over the top and highlighting more what he wants to happen then what will happen

Ha! The vultures are circling above the elevators!...Corn market opens again tonight...In the interim, as everybody loves elections, Greek polls say Greeks want to remain in the EuroZone, and have read a few blips that last election was angry blow off of steam...everyone and their mothers are short the Euro...just went long at 1.2525...stop at 1.2425...

GLTA

GC failed to complete its 3 wave up on the 5 minute 2 day chart. That is slightly bearish imo. The waterfall move down from this morning sets up a small bounce and then another waterfall probably in thin traffic when the SweatHogs like to move and jam the goalposts after 2-3 a.m. That would make for a higher low down in the 1540 area and maybe then excite metalHeads to rebuy after getting hosed down yet again by the Cartel.

Only way to buy this stuff is with a hedge or put a hedge in on spikes up. You always know the scum will price jam and suppress its just hard to say when they begin flooding in with naked shorts imo.

1/3 off at 1.2557...trailing stop on rest...if it backs off from 1.2560, might put more back on...love to let it run back to 1.30, but will have to see how it trades...also considering options on futures here...not much time left (June 8), but cheap...election is June 17...this one is a crap shoot as totally news dependent, but the market may be ready to have some smoke blown up its ass by EuroBanksters...

GLTA

CME lowered gold margins 10%

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/fi...

I'm hoping that we get a repeat of yesterday in the Asian markets: constant moderate downward price pressure balanced with buying strength during the first 30-60 minutes of the open of the various markets.  This creates a trading range.

Last night, strong buying came in at 8pm (Tokyo), 9pm(Shanghai/HK), and 1:30am(Shanghai re-open).

Mumbai was a dud (12:30am).  The sell down prior to the Shanghai re-open is a recurring pattern, which seems to often overrun the Mumbai market.

So this could be played by buying just before or just after the market open and selling after 30-60 minutes.

For 2012, Friday has been rather neutral in terms of gold appreciation.  (When I say "Friday", my analysis setup considers Sunday night EST as Friday night.)

For all of 2012, Friday has been an OK day for the time-of-day gold trade.  Usually the overnight short leg has been pretty strong.  The long leg (which, for me, includes Sunday night) has been weak.

So far this May, Friday has been a very bad day for the time-of-day gold trade.  The short leg has failed every Friday so far this month.  The long leg has been a dud.

The general reason for the failure in May for the time-of-day trade is that the falling trend reversed early and moved strongly upward well before NY open.  This killed the short trade as well as the long trade.

Here are some notes and general guidelines I've developed for myself when trading the Asian hours.  It is a work-in-progress.

There seems to be two major dynamics at work which show themselves as the price action during the opening 30/60 minutes of various markets versus the price action during the other times.

• Price action during the opening 30/60 minutes indicates Asian buying interest (strong or weak).
• Price action outside of these times indicates the amount of selling/capping pressure being put on the market.

As Asian buying indicators, I would rank them as follows:

1) Shanghai/HK open (9pm EST) and Shanghai re-open (1:30am EST).  These are the best indicators.

2) Tokyo/DX open (8pm EST).  Strength here usually means strength later.  Weakness can be ambiguous.

4) Mumbai (12:30am EST).  Strength here usually means very strong Asian buying interest or very weak pressure.  This market seems to get often overrun by a pre-Shanghai-re-open push down.

Buying outside of these times is the indicator of the selling/capping pressure.

Usually the trend is shown within the first 30 minutes, but sometimes there is a strong reversal in the 2nd 30 minutes.

There is often a modest smash before the Shanghai re-open.  A smash ahead of Shanghai re-open is sometimes bought back up in the minutes before the re-open.  The smash is sometimes brought into the first minutes of the re-open as a headfake.

A quick and small smash during the first minutes of these markets is often a head-fake.  On the other hand, a sustained drop during the entire 30-60 minutes often is a strong indication of an early downward start to the classic London dropping gold. (I.e. go short early.)

Here is the timeline:

• 6pm EST: Globex opens

• 6pm-8pm EST: This time gives you your first indication of the capping/selling pressure.  It usually shows up clearly here.

• 8pm EST: Tokyo/DX open.  Watch the first 30/60 minutes for strength/weakness.  Since the DX market opens here on most days (but not Sunday night), this can be more an indication of dollar strength than Asian weakness.  It is common for strength to be pushed back by pressure during the later 30 minutes.

• 9pm EST: Shanghai/HK open.  Watch the first 30/60 minutes for strength/weakness.  Price action during this time is usually repeated later in the evening during the Shanghai re-open.  Weakness during the entire 60 minutes is a good indicator to switch early from long to short when doing the time-of-day gold trade.

• 10pm-12:30am EST: If there is much capping pressure, it will show itself here and the price will drop.  A pre-Shanghai-re-open beat down often shows itself here.

• 12:30am EST: Mumbai open.  This is often a weak market.  Strong capping pressure will often overrun this market.  Strength here is often an indication of very strong Asian buying interest.

• 1:30am EST: Shanghai re-open.  Here is the Climax of the Asian market.  Beat downs just before and during the opening minutes are common headfakes.  Sometimes the buying strength does not show itself until the later 30 minutes.  Strong weakness is often an indication to start the short leg of the time-of-day gold trade early.

• 2:30am EST: Selling pressure usually starts to dominate at this point as the EU markets start to come online.  If Asian buying interest is very strong, it will sometimes overcome the capping pressure.  This is the normal place to start the short leg of the time-of-day trade for 2012.