The last few days have shown how cycles, timing, and technical charts can sometimes be overridden (or at least temporarily distorted) by major geopolitical events in the news. Technical signals pointing to a correction in gold and silver are abundant everywhere right now (including COT charts, which are rarely wrong), and we could still see that correction; however, recent U.S. military strikes on Syria and increasing tensions between the U.S. and North Korea have been propelling precious metal (as well as crude oil) prices to new highs. On Tuesday gold made a new cycle high, and today silver followed suit and broke just above its Feb. 24 high of $18.54. Our stop loss for our short position in both metals has been triggered. These stop losses were triggered automatically in my own investments, and I am now wondering if I have been "whipsawed" out prematurely. If investor reaction to current geopolitical tensions subsides, we could still see gold and silver prices reverse and fall to a corrective cycle bottom. Otherwise, we may have to revise the labeling of the current medium-term cycles. Friday could be a very volatile day for these metals, and that could mean a surge up in prices or a surge down. I am going to stay on the sidelines of gold and silver for now. We covered (unloaded) our short position trades in both gold and silver today
Current geopolitical tensions may have foiled our short trade in gold and silver, but it seems to be favoring our short position in the broad stock market as equities continue to push lower (though reluctantly). The current reversal zone for equity markets could extend well into next week so there is still time for the DOW, S&P 500 and NASDAQ to test or break below their March 27 lows. We will watch for this as a possible signal to take profits in our short position. Holding my short position in the broad stock market.
We are living in volatile times, and unfortunately, this will likely translate into some volatile financial markets for the rest of this year (and most likely longer).