SILVER TRADE ALERT (2:00 pm EST)
I would like to make a correction to Sunday's blog on gold and silver:
"...We may look to buy silver on Monday if we see intermarket bearish divergence..." - should read "bullish divergence".
Neither gold nor silver are making new weekly lows today so we are not getting a bullish divergence signal. Nevertheless, there is a good chance we could see a strong rally this week from last Thursday's isolated low in gold ($1334) and Friday's isolated low in silver ($16.45). If prices move below those lows after today (Monday), that will negate any potential rally. We are already long in gold so let's stay long in that metal for now. I am now going to enter a long position in silver with a stop loss based on prices breaking below that $16.45 low from Friday (that would be a loss of about 2.5%). Very bullish COT (Commitment of Traders) charts are supporting an imminent rally in silver.
I would like to make a correction to Sunday's blog on gold and silver:
"...We may look to buy silver on Monday if we see intermarket bearish divergence..." - should read "bullish divergence".
Neither gold nor silver are making new weekly lows today so we are not getting a bullish divergence signal. Nevertheless, there is a good chance we could see a strong rally this week from last Thursday's isolated low in gold ($1334) and Friday's isolated low in silver ($16.45). If prices move below those lows after today (Monday), that will negate any potential rally. We are already long in gold so let's stay long in that metal for now. I am now going to enter a long position in silver with a stop loss based on prices breaking below that $16.45 low from Friday (that would be a loss of about 2.5%). Very bullish COT (Commitment of Traders) charts are supporting an imminent rally in silver.
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