Just a quick update, gold is plunging, down more than $27 as I pen this issue (9:20 am EST).
Importantly, I have two sell signals on the short-term models: A daily sell signal with a close below $1,227.70 and a weekly sell signal will come by next Friday with a close below $1,202.50.
I expect both to be hit, the daily signal, probably today. The weekly may not be hit until next Friday, but either way, the trend remains firmly bearish.
This is great news for your bearish positions on gold and silver as well as the call options on the related inverse ETFs. Hold!
As to the reasons gold and silver are down. You can come up with whatever fundamental story you want – there is always one to be had – but the fact of the matter is that gold is simply correcting the first leg up by pulling back now and shaking out the weak long positions …
Especially those foolish enough to have bought gold based on the terror attack.
You should have easily purchased shares in SPXS yesterday. Hold with a good-till-cancelled protective sell stop at $13.85.
Hold all other positions and stay tuned!
Best wishes,
Larry
