It looks like the Southeastern United States isn't the only place experiencing volatile weather right now. The financial landscape of the U.S. Dollar, the Swiss Franc, and the precious metals is also exhibiting erratic volatility at the moment that is making it very challenging for traders. After giving strong bearish signals over the last several days, the gold and silver markets suddenly shot up today and are already pushing against (but not yet exceeding) our stop loss points for our short positions. This may be a temporary bounce, but there is another factor here that concerns me and that is today's sudden upsurge in the Swiss Franc and drop in the U.S. Dollar accompanied by strong bullish (Swiss Franc) and bearish (U.S. Dollar) signals. We had been anticipating a deep correction in the Swiss Franc and the end of an important cycle, and after it suddenly plunged on Jan. 15 with a strong bearish change in momentum it was looking like that's where it was headed. Today's surge opens up the possibility that the correction will be delayed or diminished (less likely). We haven't yet taken any positions in the Swiss Franc, so our main concern here is the fact that this currency usually moves in the same direction as gold and silver and this may be a warning to abandon our short positions in the metals. Because our stops have not yet been broken in our gold and silver positions, I am going to wait for further developments in these markets over the next day or two before making any trade decisions.
So we remain short in gold and silver for today.