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Another Dead-Cat Bounce For Gold

Commentaries & Views

Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.

Last week was an interesting one for the markets, as equities and gold bottomed for the week on Wednesday and have been rallying since. Both bounced from solid support and oversold conditions. Both are much higher this morning and should fail within a couple of percentage points from here.

Nothing in the markets has changed and as we have warned, there are going to be amazing rallies that look so good you will be upset you are not in; those are the rallies to be sold in these conditions. Look for a solid resistance level, set a stop and play the short side of the market.

The key levels to watch in the equities are 25,500 and $1,365 in gold. Until markets close above those levels, they should be sold. The recent rally appears to be a dead-cat bounce in oversold conditions. The dollar and the VIX hold the keys. If they rally, markets are going lower.

Keep those stops tight.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
1 oz Gold Rhino Bar