6/1/2016 Gold and North Korea: Respect my authoritah!
After the shenanigans at the start of December (does it seem like a lifetime ago? It does to me.) I saw a couple of Engulfing Candles on the weekly charts for a few interesting instruments (EURUSD, DXI, GOLD amongst others).
So I had a No-Touch Option position placed beneath the lows of Gold at $1043 to run till the end of January. However as the chart below shows it was not (on gold at least) an altogether convincing Bullish Engulfing Candle as price continued to go sideways and even flirt with the old lows. To be honest I thought the position would be taken out at some point.
Well God Bless Kim Jong Un for bailing out my Gold position! Fair play to the lad – one call is all it took: “Hey Kimmie, its Paul here, yeah I know I haven’t called in a long time. Yeah, I know I missed your dads funeral. Sorry for that. Listen Kimmie, my gold position is underwater and I think it’ll get taken out. Do you remember that ‘bucket of sunshine’ you had down the back of the shed? Would you now go and play with it and see if it still works? Cheers pal, love to the wives and girlfriends and all that. Yeah, see you at the Hong Kong 7’s. Bye Kimmie.”
And hey presto, one nuclear weapon test later, Gold jumps +$25 north from last weeks low. It’s not what you know, it’s who you know!
This is not the first time that North Korea and the Jong family in particular have interfered in my trading positions. I’ve learnt from that episode. What I learnt was that if your position is underwater and you cant do anything about it then having a despotic dictators number in your phone can really help sort out any problem!