The overnight session was highly active especially for the metals. Gold, Silver and Platinum were flying high. Gold was up over 20.00, Silver over 1.00 and Platinum up over 20.00. This morning they have calmed down and given back a large percentage of the gains.
Pullbacks are a natural part of the trading cycle, although many may express some concern at the overnight retracement, but trend traders will look at it as another opportunity to buy. We are long across the board and see no reason for a change with the possibility of adding to our current long positions.
There is only one issue to be concerned with this week, the lack of volume in a slow week. With another short week in markets, volume should be light, leaving the door open for wild swings. This does not change the trend, however caution in these types of markets is advised.
This week although we are bullish and want to add to our position, we will do more observing than trading. Holiday trade is treacherous and wild swings are the norm not the exception. We look for big rallies in Gold, Silver and Platinum but will sit back and watch until the new year.