The stop loss at $1265 on our gold short position is being triggered today so all traders should be out of this metal (and silver) now. Today through Monday is a strong reversal time for these metals so it may turn out that we are being "whipsawed" out of our short position prematurely. The fact that gold is now making a new monthly high while silver is not (intermarket bearish divergence) supports this idea. But late next week into the middle of the following week (March 16) is another strong reversal period for gold and silver so the precious metals could continue to rally into that time frame before reversing. If that happens, we will look to sell short again. Out of both gold and silver for now.
The broad stock market and crude oil continue to rally, but we are entering a strong reversal period for both these markets early next week. If prices stall, we will start looking for a place to sell short in equities and maybe take profits in our long position in crude. I will discuss this in more detail over the weekend. As I've mentioned in previous blogs, we could see a major reversal in the broad stock market sometime in March followed by a severe correction into the summer.