Gold and silver re-vaulting still higher this morning, with gold reaching as high as $1,243.00 (April futures) as I pen this issue and silver as high as $15.745 (March futures).
The chief reason: News from Janet Yellen that she will continue to raise rates on a gradual basis.
Surprisingly, though, this is not strengthening the dollar, which is still largely trading sideways. Instead, we are seeing equity selling in overseas markets, which is undoubtedly helping to create the bid for gold and silver.
You should have grabbed profits on half your UGLD and USLV shares yesterday at roughly $10.28 and $12.77 for 30.1% and 33% gains, respectively.
Hold the remaining half of your positions and don’t look in the rearview mirror and say, “If only we had held the whole position, our profits would be even greater today.”
That statement, is of course, true. But it’s equally possible gold and silver could have plunged today. Moreover, Monday morning quarterbacking the markets, second-guessing me or the markets, will not make you any money and is a negative emotion.
The fact of the matter is this: Gold is now coming into major resistance at the $1,225 to $1,235 level and if it fails here, it will plunge with a vengeance – all the way back down below $1,200, likely even below the $1,187.50 weekly buy signal.
In other words, there are plenty more opportunities coming up, on both sides of gold and silver, bullish and bearish trades.
As I pen this issue, the Dow Industrials are down more than 273 points in pre-opening trade in the futures market. UVXY is soaring. HOLD.
Hold all positions and related stops and STAY TUNED and DISCIPLINED.
Best wishes,
Larry
