Silver and gold are edging up some more today towards their former breakdown points at $1500 in gold and $26 in silver, and this is looking like a very good setup for short selling the precious metals. There is still some bullish momentum indicated in some parameters in the charts of both gold and silver right now, and I would prefer to see this turn bearish before selling short. We will therefore wait for this signal (which could come over the next several days). On the sidelines and waiting to go short here.
Crude oil dropped close to $92 intraday today but appears to be closing close to $93 which is well above the $91 price we wanted to see it close under to consider short selling (as stated in last night's blog). We will therefore remain on the sidelines of this market for now and watch how the price pattern develops over the next week. As I stated last night, momentum indicators are still mostly bearish in crude, but this week's dramatic surge in price could be indicating that this is about to change and become bullish. Standing aside here for now.
The broad stock market has not changed much since Wednesday and continues to give a mixture of bullish and bearish signals. We are currently in the center of another timing window that would suggest a reversal in market direction, and since the market has been rising this week (especially the S&P 500 and NASDAQ), this could be a bearish sign. We will need stronger bearish momentum signals to verify this, however, so for now we remain on the sidelines.