News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
Gold Market Wire... Gold Market Wire... Gold Market Wire
Gold Market Wire... Gold Market Wire... Gold Market Wire
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Checking in after the Spec

August 27, 2020 - (Gold Market Wire) - Yesterday's spec/scalp worked out well... getting us in close to $1900 and then promptly rising toward the downtrend. The key, as ever, was: 1) not to consider it as a position - but, just a spec...and 2) not to get too greedy and to trade out after a decent bounce. If you waited and tried to squeeze every last tick out of the market, waiting for the downtrend to be perfectly touched, you gave away money because of greed - a classic flaw. As Mr. Sinclair advises in situations like this, "take something out of the middle and go home." True words.

So, now what? Well, the chart says it all. The downtrend, i.e. - the predominating trend as of late, is still in tact, and we don't believe the down movement is over. That is why yesterday's long was only a spec/day trade.

today's daily chart - downtrend in tact.

Yesterday's Silver move was impressive, bouncing strongly. These days, for long positions and 'alpha', it is the place to be. That's unlikely to change soon. The chart below (the first) shows just how the downtrend got pilloried by the Gold bounce - amplifying the move.

sliced right through the downtrend

It's almost enough to make one believe that Silver's downside action is over...almost. But proving grounds still lie ahead, and the thin markets of late August aren't places we like to dabble around in for very long, while the ever-bored COT seek suckers' money to go on vacation/holiday with, by ratcheting the Silver market up and down.

Now, we redraw the chart with yesterday's high in it.

new day...new chart.

So, Silver stays above the line this a.m. - but only just. Let's see if it can hold and start creating an uptrend before we get excited and start buying. Yesterday's spec long in Gold was both textbook and profitable, but we aren't getting ready to repeat it right now.

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