Pfizer announced a Vaccine on Monday that shows a 90% effectiveness, interesting timing. The news helped equities explode higher, while at the same time Gold, Silver and Platinum got clobbered. While Silver and Platinum were trying to breakout to an uptrend, Gold which had just reversed trend will reverse back to short this morning.
A one-day trend reversal is exceedingly rare; however, the longer-term trend is back in play which is now short. Once again, we are short all metals and look for lower prices. Resistance is back at 1900 December Gold, 25 December Silver and 900 January Platinum.
This morning at 3:10 EST, Gold, Silver and Platinum are higher which we consider a dead cat bounce or a short covering rally. Either way we are sellers, fortunately the rally this morning lets us sell at higher prices. This could become a volatile time in all markets, we are prepared for everything and just trying to capture 70-80% of any trend move.
The trading business is about profit not being a prophet. Markets that become volatile always cause trouble for traders, too busy guessing instead of using a solid model. All our decisions are based on our algorithm and nothing else.