Hilarious algo fail

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Imagine getting one hour to think about what to do after the Trump speech, and coming up with the idea to sell your only winner (gold futures) at market price immediately after the one hour break, lol. Probably sold it to buy more index futures, lol, morons.

Apparent that is what at least one of the algos did. It looks like all of the algos are desperate for cash right now because gold futures are not tracking spot price. (I posted a plot)

If you bought GLD like I did, look at spot pricing XAU/USD tomorrow, not futures GC1!. We're up over 1% now.

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Ghi chú

Man, I wish I could edit this, lol. I'll leave my mistake for prosperity.

Anyways, the FAIL is that I didn;t know teh details of the tariffs. Gold has >8% tariff premium priced in over the past month because traders were anticipating a 10% tariff on gold from EUrope. Turns out he exempted gold, and that's why all of teh Euro gold traders dumped futures.

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Ghi chú

ALso explains the basis drop in June futures. Basis is the difference between futures and spot price.