News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
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US Bans American Banks from Purchasing Russian Sovereign Debt
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold/Silver Market Update

European Stock Markets Produce Slight Bounce

October 5, 2021 - (Gold Market Wire) - European stocks have registered a slight bounce this morning, after yesterday's sell-off to the horizontal support in the German market (DAX). But so far the 'recovery' has been feeble. The cat's are bouncing, but they still look pretty 'dead'.

the battle line (horizontal)

...and the same, zoomed out for clarity of the line:

the horizontal support; hewn from history

Yesterday's prognosis was half right. We called the desperate state of equities, right on the money: 2.14% lower on the NASDAQ; .94% lower on the DOW. Technically the equities don't look that good, but if we bounce stronger into the end of the week, the situation could stabilize. We offer no crystal ball on whether the market will collapse or not, we note only, that if we stay at these levels into the end of the week - then things look bad. In short, the market needs to recover at this stage. If we get another move lower, it will likely lead to a serious downdraft. In short - the market is weak, and needs to get a move on to prevent another sell-off.

The part we didn;t get right was the reaction of the Metals. We thought the downdraft in equities would have produced a sharper move lower in Gold and Silver. In that sense, latent bulls that we are, we are actually encouraged. There is still the threat that we could get that move down today, or later in the week. These things aren't 'arb'-able. Yesterday's 30-minute 'rat race' chart shows how we really just ebbed and flowed a bit; following equities loosely, but really not selling off sharply, considering the NASDAQ carnage.

30-minute chart of yesterday's action

And that is the state of play. Our advisory to the gambler's to sell the equities worked well; selling the metals really didn't produce much. As for being the humble traders we are here at GMW, we are still hugging the sidelines. October, much as we thought, is turning out to be 'psycho-world', and we want nothing of it. If get a truly dramatic sell-off in the metals, as in, a move toward $18.50 in Silver, we will buy some core, just out of discipline. But for now, we are simply waiting for oppourtunity...and clarity.

...to paraphrase the great explorer himself...we "may be sometime."

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