Gold and silver running
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After last Tuesday’s fear blow-off to the upside with the immediate reversal, it looked like the tops were in for gold and silver. Suddenly the metals have found support and are holding at support and now look like they may have put in a bottom.
The blow-off pattern that looked like the metals had put in the highs is resolving itself through consolidation. There are many ways extreme patterns can resolve themselves. In this case with gold and silver, it appears that they are forming a higher low within an uptrend. We were looking for a reversal, which never came.
Although we were negative after that Tuesday blow-off, our algorithms never reversed. We waited and waited for the reversal to come and get short, but it never came. We are long and will stay there with a concerned eye on the pattern and the algorithm. One thing we know for sure -- never fight the pattern you have. Play the cards you are dealt, not the ones you want.