07:35am  ~  Speculation about a possible Fed taper sent US markets sharply lower again yesterday, they suffered their worst falls in four weeks and this is likely to translate into a lower open for European indices this morning.  As I have mentioned previously, the S&P500 daily chart did look like it was ready for a drop as it had hit a resistance level at 1815 a few times since the end of November.  While there is some data this morning in Europe including EU industrial production for October and the European Central Bank monthly report the main focus is likely to be on this afternoon’s US data.

It’s been nearly seven months since Federal Reserve Chairman Ben Bernanke first raised the idea that the Fed might look at tapering its asset purchase programme if economic data were to improve sufficiently to warrant it. Is it possible that this time next week we could see the beginning of the end of this latest bond buying programme with a small reduction in the pace of it. Despite a weak dollar and tumbling equities, the Gold price has obeyed the $1265 resistance level that I mentioned yesterday – it lost around $10 in trading yesterday.

After a nice day out in the fresh air yesterday, I’m up very early for some reason and in the study this morning doing some admin together with a couple of Skype calls before 9am – plus some chart watching before a cycle ride prior to a lunch out at The Bell in Walberswick with friends.

09:10am  ~  I’ve finished my Skype calls so I am going to watch my charts for a few hours while I do some emailing and also some re-writing of the updated “Trade With A Day Job” system manual that I hope will be out next week.

09:55am  ~ I am now in a ‘short’ position on my Gold chart – my entry price was$1241.80.  Bike ride postponed until I’m out of the market.

13:15pm  ~  I am off for lunch now at The Bell and as my Gold trade is still trundling its way downwards, I have put a stop just above the most recent high ($1238.20) and will see what happens when I get back.

15:10pm  ~  Got back from lunch 10 minutes ago and quite happy with the progress my Gold trade has managed, so I’ve closed it off at $1225.70 giving me a +156 pip profit after the spread/commission. After a large lunch I do not fancy a cycle ride yet, so I’m going to get started on with repairs to some old electrical wiring in the cellar.

22:35pm  ~  Finished in the cellar and the electric is back on – and now time for a swift pint in the Lord Nelson.

Daily Target Reached ?  YES  (+156 pips)