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BUY GOLD NOW - XAU/USD High probability

 

BUY GOLD NOW - XAU/USD High probability

Hi Worker and Queen Bees,

Here is some royal jelly for you:

I share this high probability XAU/USD Trade potential with you (www.tradingview.com):

 

XAUUSD: When VIX*SKEW is LOW, BUY $XAUUSD GOLD now

 

Here is a quick diagram of the relationship of two of my favorite indicators combined with Gold -0.90% .

I've got to get this out to you now, and follow up later with more details.

Sometimes a picture is worth             a thousand words and sometimes I have to spell out the words, which may be the case with this one.

Many worry that VIX 5.31% is low, but low VIX 5.31% is not a worrisome sign at all and frankly all by itself it has a low batting average at calling major market moves. However, if you blend it together with its far more powerful cousin, the SKEW, you get a more detailed view of what is going on in the market.

If you've seen my other posts on VIX 5.31% , you will see for yourself. I use VIX 5.31% in very different ways that are logical and not just to catch headlines, like I see everywhere. People often use VIX 5.31% to justify their position, which is interesting in itself. I imagine you have have heard the beating drum of "DANGER: LOW VIX' for a long time now.

Let's think through VIX 5.31% together: VIX 5.31% is a measure of options prices of the S&P500 -0.14% nearby in time and near the money. If people are selling options, it drives the VIX 5.31% down. If people are buying options it drives the VIX 5.31% up. The next piece is the SKEW. SKEW tells you the ratio between the prices of puts and the prices of calls. The higher the SKEW, the higher the price of puts is to the price of calls. High SKEW alerts you to high put prices, but relative to call prices.

So, what would make SKEW be low and VIX 5.31% be low? When people are selling puts. This is not a good situation for the market in general.

On the other hand, when VIX 5.31% & SKEW are high, it means people are buying put options, and it means the market is building a foundation of support as that put-buying creates hedges to protect against selling at lower prices. As the VIX*SKEW is rising, it is bearish , however. So wait for it to stop rising and for prices to stop falling to set up long trades after a big run up. Sorry to have digressed.

The other situation of interest is when VIX 5.31% is high and SKEW is low. That means that people are buying call options. That is not a good sign if the market doesn't keep rallying after this happens. Why? Well, who is left to buy? If you get short covering, then buying, then margin buying, and lastly call option buying.... That's a good way to look at it.

I'll see if I can publish this chart when I get back to my desktop which has higher resolution and a nicer look. But wanted you to have this now because it is TIMELY NOW.

Tim

4:55AM EST, 1:55AM PST from Las Vegas, NV

Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com

 

 

 

Sat, 06/10/2017 - 5:52am
 
purpleskye

Above you write,

"Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com"

Are you soliciting orders? Is this allowed on the Apiary website? Just wondering....

 
rlilly4

I've not seen anything against soliciting. Still feels a little slimy.

 
jrh

My humble apologies if I have offended you two above, however the message you are referring to has been incorrectly directed at me personally as to being the one soliciting orders or being slimy.

An appreciation of my sharing the possibility of this being a high probability trade, is neither expected nor will it offend me in any way. So please don't shoot the messenger.

 
jrh

Another validation confirming that gold is on the UP and why? My bias is that I anticipating a small draw down first where I will be accumulating buy orders.

Go to this link: https://www.investing.com/analysis/gold-is-standing-at-the-crossroads-20...