The smart way to trade Gold’s super squeeze: This gold pattern could be your best edge right now!
Hey folks,
It’s starting to feel like a Trump market again — swingy, headline-driven, and quick to change its mind.
One day it’s tariffs on China, the next day they’re our best friend, and you can see it play out in price: sell off hard Friday… bounce right back today.
If it feels inconsistent, that’s because it is.
Part of the problem is the government shutdown. With the usual economic releases delayed or thinned out, the market doesn’t have many fresh numbers to anchor to.
So it grabs the loudest headline and runs with it. Until Washington opens the spigot again, expect more of this tank-then-rally rhythm.
Meanwhile, the metals keep proving why I like having them on the sheet.
Gold and silver notched new all-time highs and I’m still riding that wave.
I’m not chasing green candles, but when we get orderly pullbacks that hold prior support, I’ll look to add with tight risk. If silver can keep tagging along and closing firm, I’ll give it a little more leash; if it lags while gold runs, I keep position size modest and make it earn its keep.
How I’m handling this environment:
- Don’t marry a headline. We just watched “tariff fear” turn into “China thaw” from one trading session to the next. I’ll trade what’s on the screen, not the sound bite.
- Keep size sane. In headline markets, the first move often isn’t the real move. Smaller contracts, quicker profit-taking, and no hero trades.
- Let levels do the talking. I care more about whether we hold or lose yesterday’s key levels into the close than who said what at a podium.
- Use income where it makes sense. On stretched charts, I’d rather get paid to wait (covered calls/credit spreads) than chase the last inch of a move.
A quick read across the board:
- Indexes: Expect choppier sessions until the shutdown ends and the data resumes. Relief pops are fine; I’ll want to see follow-through before I press.
- Gold/Silver: Leaders for now. I’m buying dips with defined risk and letting strength prove itself on the close.
- China-sensitive areas (copper, rare earths, big export names): These will keep whipsawing with every “tough” vs. “friendly” headline. Position accordingly.
Bottom line: when policy headlines dominate and official data is scarce, the market turns into a rapid-fire mood ring. That’s fine.
We adapt — smaller size, clearer levels, and a plan to harvest premium or buy strength after it proves it can stick.
And be sure to register here to join me daily for Profit Panel.
As always, I’ll answer your questions, go through the key stories of the day and even share free trade ideas.
Stay sharp,
— Geof
