Thursday, December 29, 2011

Gold: This is What an Ex-Momentum Trade Looks Like.



Momentum is mystical, no one can truly explain where it comes from, why it manifests itself the way it does, or why it seems to come and go so suddenly - capriciously, the jilted trader who bought at the top would say.
But there is nothing quite so ephemeral or tantalizingly mysterious about the aftermath of momentum.  It's brutal-acting and horrid-looking, it's lower highs and lower lows, it feels like give-up and the thwarted snapback rallies on the way get more and more feeble during this hope deflation process.

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