Silver, gold and platinum get clobbered
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Monday, the metals were charging higher; it appeared the rumors of a short squeeze in silver were going playout as the precious metal exploded higher. However, on Tuesday, the sellers were back, and silver lost more than it gained on Monday.
Gold and platinum were under pressure as well; both failed from resistance levels. This morning we are seeing a small bounce across the board. Our current positions are long silver and platinum and short gold. The keys to watch in gold are $1,820; if it goes below $1,820 April Futures 1800 comes into play. Platinum is stuck between 1050 and 1150, in other words consolidating. Silver must hold the 26-support level, or it's right back in the bear market.
One of the biggest advantages of being a mechanical algorithm trader is that I don't care about news, opinions, or emotions. I simply trade the signals that the algorithm spits out every night after the close. Because we don't ever make adjustments during the day, our current positions will be the same until at least tomorrow.
Those who worry about news items they hear, chatroom banter or any other place that will drive emotions are sure to keep you on the wrong side of the market, wondering how you lost your money. Trade the news you lose!
On our Monday Night Strategy Call, we talked in detail about Reddit's WallStreetBets and why what they were attempting would fail. See recording below.
We have also included a registration link for session 4 on Saturday February 6th at Noon EST