We were traveling Friday and were not able to write our daily report on the metals. The facts are simple, we are still short. Obviously it’s not a comfortable position to be in the recent runs to resistance. However, that’s where the metals are at the top end of resistance; they could breakout to the upside or fail.
Our message has been consistent: we do not get emotional about our positions; they are a matter of fact, based on a mathematical formula, not our opinion. Can gold, silver and platinum breakout from here? Can gold run back to all-time highs?
The answers are simple. Of course, they can; on the other hand, this could fall back down and resume what the algorithm shows as a downtrend. Either way, we will be in, either long or short, until tomorrow. We will remain short across the board; nothing will be reversed before tomorrow morning.
There is a fly in the ointment today. It is a partial holiday. Banks, bonds and currencies are closed. Meaning today’s action could be false in either direction. We don’t sell tops or buy bottoms; when the trend changes, we will reverse. It’s that simple.
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