Well, our short positions in gold and silver are certainly under immense pressure, but at least for today we will remain short. This morning’s rally is pushing the upper levels of our signals. However, in any case, our signal will not change until the markets close today. In other words, we are short report that side and will do so until a reversal signal is formed.
As of 6 AM Eastern time gold is up $18 December futures, silver is up $0.54 December futures and platinum are up $22 October. At this point, our only saving grace is being long platinum. As we have written many times we will not get involved in daily volatility or swings, but will monitor the price action, which would determine our direction.
Looking at the charts from a technical perspective, a reversal signal would be no major surprise. However, based on the information I am seeing in price until gold clears 2015 December futures it would still be in a consolidation pattern and can easily fail to gold back to 1900. Silver more powerful in gold basis price action and looks ready to test new highs. October platinum looks good and has a chance to reach new highs as well.
For today, we will stay short silver and gold, and long platinum, making our decision after the close today. Based on what I am seeing in the price action, we will be reversing tomorrow which means we will not be adding to our short positions. Today would be a day of reckoning, the chart reverses or we do. Although at this moment our position is ugly, we will not let human emotion determine trade. It is that simple.
Todd Horwitz Chief Strategist BubbaTrading.com
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