Gold and silver fail to take out resistance
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Over the past few days, we had concerns that gold and silver were getting close to reversing. However, it is apparent that they both failed at the key reversal levels and now they look to be headed back down. This is the reason that we only react to closing prices.
There are still some positive signs that could change the pattern. Still, as of today, gold and silver are headed lower. They are close enough to make a change, but until they do, we will keep our short positions and now possibly add to them over the next couple of days.
We know that the gold bugs are calling us nuts, but of course, when trading mechanically, nothing else matters. We expect the selling to continue and possibly accelerate to the downside until this pattern changes.
Investors should stay long and ignore the signals; traders should be short. Those with opinions or those who need to reason why gold and silver are shorts at this time will always struggle when the metals are negative. Trading mechanically is simple for those who can ignore the surrounding news and opinions of others.
On Saturday April 10th we presented our micro mini portfolio models. The recording is below.
Monday Night Strategy Call Registration below. Call starts at 5:00 EST