It so happens I watch corn and gold
Usually I check the price of corn and then gold
I have noticed that almost every time corn is up or down, so gold is the same
I don't look at silver so much but every time silver usually follows gold
If a person could find out which of corn or gold made the move 1st
I wonder how long before the other would follow
Also I wonder how often gold does not follow corn going up or down together
There must be a trade opportunity here some place, just that I don't have the patience to follow minute by minute, and do my due diligence
I wonder how long this has been going on like this
Do these commodities always go up or down together, or what is the % of together. Enough to cancel the bad trades??? and profit???
How much time do you have to make an entry or exit
This morning corn went from approx 2 cents to 5 cents in minutes but enough time to easily get a trade in place
I did not watch gold over the same time period
Thanks Wayne,
Sometimes they go up in tandem for the same reason(when its news related).
Sometimes most of the markets will move in tandem, if say for instance the price of crude oil is extremely volatile and spiking up and down on powerful news items.
However, there are traders in the markets with million+ dollar spec accounts that use computer programs which get triggered instantly which take advantage of price relationships that you mentioned.
In fact, many markets are greatly influenced by computer algorithms which are programs that are triggered by whatever short term price/volume dynamic can be used to squeeze out several ticks.
You and me don't have the sophistication and be able to do the same thing.
But that's only a small part of the market's, sometimes wild and sometimes intermarket correlated gyrations.
When it gets down to the brass tacks. Both those market still have to be accountable to the supply/demand/storage/price fundamentals which are the key drivers.
Corn prices are up here right now because of low global supplies and other bullish fundamentals that include bad early planting in the cornbelt and a hot/dry growing season forecast..........not because of gold.
But inflation expectations, along with gold price increases can also add to the bullish outlook and contribute to higher prices too.