Gold, silver having dead-cat bounce
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After the metals’ recent 5% rally, gold and silver have managed to hold support and bounce from the lows. This morning gold and silver are higher, which we see as a dead-cat bounce in markets that are probably going to work their way lower.
The overall pattern has turned bearish; however, the sell-off has not turned our algorithm to the short side yet. We are still long the metals, although we realize the probabilities are that lower prices are coming. The metals are one down day from reversing to the short side.
These patterns appear in all markets, which is why we don’t talk about the news. The news is more often than not priced into markets long before it ever hits the tape. If you trade the news, you will lose. Follow the market footprints; they are like a map and will guide you to the correct side of the market.