The Tops Held And We Are Short-Term Sellers
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
We have been watching the markets trade for over 38 years and occasionally get fooled by the patterns. The gold breakout last week failed and had a key reversal pattern, which indicates the top is in. A key reversal occurs when markets make highs and close on their lows. Gold was a little lower Friday.
We are now short-term sellers; the rally has run out of steam and rallies should be sold for now. However, long-term investment positions should be left alone. We believe the six-year bear market is over and will hold our investment position in gold very similar to the way we trade equities. In the near term, as traders, we are sellers, knowing that our only risk is giving up some potential profits.
One of the biggest problems in the trading and investing world is the way that investors and traders confuse the long-term goals. Don’t let a short-term objective confuse an investment. You can make money on both without liquidating a long-term hold. Traders trade, investors invest, many do both but they are not related and should not be confused with one another.