News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold and Silver Start to Retrace

July 28, 2020 - (Gold Market Wire) - Gold and, especially Silver, have begun to retrace part of their recent extraordinary gains as volatility continues to buffet the Precious Metals Market. The chart action has been wild, especially to the upside...and now, as markets are won't to do, the reverse.

what a day at the Races...and we've only just started.

And if you think that was some action - try the Star of the Show in recent weeks - Silver.

down over 7% this European a.m.

It should be lost on no one that what goes up comes down, even in a Gold bull market of historic dimensions. There will be no free rides into the stratosphere. You either retain the discipline to buy as the market comes down - small at first - and then larger - with no margin (especially in Silver) or with minuscule amounts in Gold...and then sell out of the position gradually as we move up, no matter how convinced you are that $3,000 is "right around the corner". If you don't you will either chase the market, as many just did, or hold on to length through the whole roller-coaster ride... which isn't trading, but just 'buy and hold'/Warren Buffet - style investment strategy.

We advised, as we approached the all-time high to start the lightening up process in a serious fashion. For those that followed our disciplined route, we were scaling out of the market as we crossed the all-time high, and, yes, we happily missed most (though not all) of the the move up from the old high at $1921 to $1981. Of course a trailing stop can help in execution, but how many platforms guarantee them these days? If some still do - they soon won't. That leaves staying on the screen 20 hours a day as the other option, unless you can hand off the orders to people/platforms around the globe (good luck with that). A much better approach is to retain the discipline of sales into rising markets, and if you're overly concerned that you'll miss the 'moon shot', then increase the investment position and scale back the trading position. Given the volatility we can expect over the next 2 years, that is probably not a bad idea.

When the going gets crazy, its time to put the 'perspective' goggles on. Volatility is now the order of the day and it isn't going to stop any time soon. The United States is heading into complete chaos, and the EU isn't far behind. The western world is in big trouble. Without discipline in the trading arena, you'll be cut to pieces.

Right now, the end of month settlement approaches, and its going to be important in indicating how we might drift down. Just as an addendum to today's opening report, don't forget that any signs that Biden could take the US Presidency will be damaging to the US Dollar and Gold positive. We wouldn't call the inverse premonitions to be completely, only relatively, true. Gold is in a bull market of a serious nature. For the trading book, our focus should now be picking an entry point for a first place to establish small length.

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