In last Sunday's blog on gold and silver I wrote:
"...this week we have unique technical signals that point to a possible strong rally in both gold and silver that could start on Monday and continue into the following week. It all depends on whether gold and/or silver started new cycle(s) recently or if they are still completing older cycles. A new cycle would be bullish, but an older cycle means that lower prices are still ahead until the cycle makes its final bottom."
Well, both metals have rallied, but silver has rallied much more than gold. It is possible that silver started a new cycle on March 20 while gold may still be completing an older cycle. Silver made a new monthly high yesterday and today, but gold is not even making a new weekly high. This gives us a strong case of intermarket bearish divergence. We expected this week's rally to be sharp and short-term. While it could continue into next week, we are getting many short-term signals suggesting a peak now. For this reason, I am going to take profits in both silver gold long positions today. Note that once this rally tops and takes a corrective dip, we will be looking to get long again as gold and especially silver are still looking very bullish in the longer-term. Selling my gold and silver long positions today.