I spent last week away from the markets and enjoying Paris.
I saw many of the sights – the Eiffel Tower, the Opera – but not the secret signs from the Da Vinci Code which are scattered around Paris.
That got me thinking about the markets. Lots of people think they have secret codes or methods that are kept secret from the public. I believe that if you look carefully there are obvious signs about its next moves. Lau Tzu once said, “Nature’s way is simple and easy, but men prefer what is intricate and artificial.”
I’ve previously said that the market itself got me short on crude oil once it broke below $120.70 and my target was the $115 area. I banked money again as the September contract expired last week at $114.98. That netted me a profit of £2,860 at £5 per point. The Coca-Cola position which was triggered long at $53.00 has been stopped out at $53.84 with a profit of 84 points multiplied by £5 per point, collecting £420.00.
Elsewhere, gold has found support at the $815 area and I’m long at $819 looking for a test of $858. It is currently off by 25 per cent from the March high. If I see further strength in the next few days then I may buy another contract at $841.25.
The last quarter of the year can be a time for bargains, but don’t confuse cheap with value. Trying to pick a bottom is a gambler’s game and I’m not going to gamble with the markets. That’s for the casino. And that’s another story.