SILVER TRADE ALERT and UPDATE ON THE BROAD STOCK MARKET and CRUDE OIL (4:30 pm EDST)
We have another good call (besides our short position in the broad stock market) with our long position in gold that we entered yesterday. In yesterday's blog I made the case for a sharp rally, and indeed, we are seeing that today as gold prices soared up over $30 and closed at $1224. We stayed out of silver as it seemed a bit weaker than gold, and in fact, it is not rising as sharply as gold today, but I think the yellow metal will lead this rally and silver should follow for at least the next several days. I am going to go long now in silver for tomorrow's market open with a stop loss based on prices moving below yesterday's low ($14.26).
The broad stock market continued its descent today as the DOW lost another 546 points. The DOW is already down to the 25,000 level, and we may see some support now at this line, but it's a little early for a final cycle bottom. If we break below 25,000, the final bottom could end up considerably lower, and we may not see it for another few weeks.
We are happily holding our short position in the broad stock market for now.
Although we accurately called the correction of the broad stock market with a short position right at the top, we unfortunately missed an equally good opportunity in crude oil. I had suspected crude's final cycle top was at $76.90 on Oct. 3 (Nov. contract chart), but fears concerning the Trump administration's sanctions against Iran coming up in November were making me think another spike in price was possible. This made me hesitant to sell short. Today's steep drop in crude prices suggests that the current medium-term cycle's final corrective drop is underway. Any kind of short-term relief rally (perhaps in reaction to those looming sanctions) may give us another opportunity to sell short, but for now we will stay on the sidelines of crude.
We have another good call (besides our short position in the broad stock market) with our long position in gold that we entered yesterday. In yesterday's blog I made the case for a sharp rally, and indeed, we are seeing that today as gold prices soared up over $30 and closed at $1224. We stayed out of silver as it seemed a bit weaker than gold, and in fact, it is not rising as sharply as gold today, but I think the yellow metal will lead this rally and silver should follow for at least the next several days. I am going to go long now in silver for tomorrow's market open with a stop loss based on prices moving below yesterday's low ($14.26).
The broad stock market continued its descent today as the DOW lost another 546 points. The DOW is already down to the 25,000 level, and we may see some support now at this line, but it's a little early for a final cycle bottom. If we break below 25,000, the final bottom could end up considerably lower, and we may not see it for another few weeks.
We are happily holding our short position in the broad stock market for now.
Although we accurately called the correction of the broad stock market with a short position right at the top, we unfortunately missed an equally good opportunity in crude oil. I had suspected crude's final cycle top was at $76.90 on Oct. 3 (Nov. contract chart), but fears concerning the Trump administration's sanctions against Iran coming up in November were making me think another spike in price was possible. This made me hesitant to sell short. Today's steep drop in crude prices suggests that the current medium-term cycle's final corrective drop is underway. Any kind of short-term relief rally (perhaps in reaction to those looming sanctions) may give us another opportunity to sell short, but for now we will stay on the sidelines of crude.
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