Gold and silver fail first test
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Tuesday, gold and silver attempted to break out of their consolidation and potentially start a new uptrend. They both failed and closed lower on the day, which is a more bearish sign. However, once again, they are rallying this morning, looking like they will make another attempt to break out.
Consolidation is the worst trading pattern, which almost all markets are in right now. Equity markets, metals, and others are at critical points of a potential reversal. We remain short but know at these levels, there are dangers that would force us to reverse.
Platinum has broken out; if the move confirms today with higher close platinum up two dollars now, we will be reversing tomorrow. A flat to lower close will keep us short. As we try to remind you on a regular basis, we do not play intraday price movements. Decisions are based on closing.
Obviously, with our positions predominantly short is the key time, but we will reverse the algorithm calls for it. We do not argue with our trading methods, we follow the rules exactly. For today, we are short just about everything. The rally will probably reverse us in the long term.
On Saturday September 12th we presented our Equity Portfolio models. Here is the recording from the event
Equity Portfolio Management