I am going to hold off on short selling silver today as short-term technical factors indicate it may not be ready to turn down just yet. Silver tends to be more volatile than gold so I am a little more cautious about trading it short-term. If it does rise some more this week it will be an ideal short sell as long as it doesn't close the week with a clear break above $21. Holding my short position in gold but still on the sidelines of silver.
The broad stock market has been fairly stable this week (the NASDAQ has been rising, but the DOW and S&P 500 have been relatively flat), but it is looking overbought and toppy as we move into the center of this week's time zone when reversals can occur. I am still expecting some sort of correction now which should present an opportunity to buy into this market (as long as the correction doesn't fall below 15,850 in the DOW and momentum remains strongly bullish). Still on the sidelines here.
Crude oil prices dropped severely today (on news of more rising crude oil supplies in the U.S.) and traded briefly near $91.80 at 1:00 pm EST but are now settling just above $92 (at 2:00 pm EST). I had been intending to sell short a rally into this week's reversal period, but instead the price is dropping strongly and is forming a new cycle bottom. As I have mentioned in recent blogs, the cycle picture in crude oil charts is currently not clear, but this new low now negates the idea that a new cycle began at $93 on Nov. 14. Instead, it could be starting with a low that forms this week. Momentum remains bearish, but the cycle picture is still ambiguous so I am staying on the sidelines of this market for now.