SILVER TRADE ALERT (1:45P pm EST)
Today silver is giving us that bearish sell signal we had been anticipating, and we are going to establish a short position in silver now. As with gold, there is room for a good correction here; however, we will watch carefully for any support levels the falling price may find should the correction turn out to be minor.
Crude oil also flashed a bearish short-term sell signal today and is falling steeply. We are not, however, shorting this market right now because of a conflict between momentum indicators and cycle analysis. While momentum is strongly bearish at the moment, cycle studies point to the start of a significant new cycle and very strong support at the April 18th low around $86. If the cycle is valid, the current correction shouldn't get very far, and we should be looking to buy if it stalls and finds support above that $86 level. We, therefore, currently have a strong contradiction between momentum signals (bearish) and cycle analysis (bullish) and will wait for this situation to resolve before trading the market.
Today silver is giving us that bearish sell signal we had been anticipating, and we are going to establish a short position in silver now. As with gold, there is room for a good correction here; however, we will watch carefully for any support levels the falling price may find should the correction turn out to be minor.
Crude oil also flashed a bearish short-term sell signal today and is falling steeply. We are not, however, shorting this market right now because of a conflict between momentum indicators and cycle analysis. While momentum is strongly bearish at the moment, cycle studies point to the start of a significant new cycle and very strong support at the April 18th low around $86. If the cycle is valid, the current correction shouldn't get very far, and we should be looking to buy if it stalls and finds support above that $86 level. We, therefore, currently have a strong contradiction between momentum signals (bearish) and cycle analysis (bullish) and will wait for this situation to resolve before trading the market.
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