SILVER TRADE ALERT (1:30 pm EDT)
Silver prices are surging strongly today and have already broken through our stop loss of $15.70 suggested in Sunday's blog. Today's rally strongly suggests that April 1 was the start of a new medium-term cycle. If so, the rally could surge higher as the start of a new cycle is always at least short-term bullish. I am going to emphasize short-term bullish here because at the end of this week we enter a very strong two week reversal zone for both gold and silver which could turn down any rally even if this is the start of a new cycle. For now, however, it's probably best to cover our short silver position, especially as we can get out today with no loss as the price is exactly at our original entry point. Covering (unloading) my short position in silver now.
I am going to hold my short position in gold for now. It still has not breached our $1,260 stop loss, and I am not so sure that March 28 was the bottom of gold's medium-term cycle (i.e. it could still fall to $1,200 or below over the next several days). The precious metals could be very volatile this week so we could liquidate our short position in gold anytime now. Stay tuned.
Silver prices are surging strongly today and have already broken through our stop loss of $15.70 suggested in Sunday's blog. Today's rally strongly suggests that April 1 was the start of a new medium-term cycle. If so, the rally could surge higher as the start of a new cycle is always at least short-term bullish. I am going to emphasize short-term bullish here because at the end of this week we enter a very strong two week reversal zone for both gold and silver which could turn down any rally even if this is the start of a new cycle. For now, however, it's probably best to cover our short silver position, especially as we can get out today with no loss as the price is exactly at our original entry point. Covering (unloading) my short position in silver now.
I am going to hold my short position in gold for now. It still has not breached our $1,260 stop loss, and I am not so sure that March 28 was the bottom of gold's medium-term cycle (i.e. it could still fall to $1,200 or below over the next several days). The precious metals could be very volatile this week so we could liquidate our short position in gold anytime now. Stay tuned.
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