Dear Member,
Do not, I repeat, do NOT buy into this metals rally. It has “sucker’s rally” written all over it.
While the metals and mining shares could indeed move higher into early next week, everything I am looking at including my trading and economic models are telling me that this rally is nothing more than sucking in the weak-handed buyers and short-covering needed to fuel the next leg down, which should be a doozy.
Indeed, initial projections I just ran show gold now falling as low as $900 as we head into May.
If my work is wrong, then we will still see gold give back as much as two-thirds of this rally — bringing it all the way back down to the $1,250 level or slightly lower — where we will have a chance to enter the long side with much lower risk in our favor. Ditto for mining shares and silver.
I’ll explain more next week. But right now, I repeat, stay OUT of the long side.
I expect to issue aggressive short sale/bearish ETF recommendations early next week.
Best wishes,
Larry
