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
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 and Silver Update

Gold and Silver: The Update

November 10, 2021 - (Gold Market Wire) - Yesterday we shed 2/3 of our length in Silver and pointed out that Gold had a formidable challenge in the horizontal resistance marker. This morning, Gold has backed off, and shied away from that challenge.

...starting to shape up like a reversal.

Although its early in the day, at first blanche we'd have to say we don't like this development. The market has done well to get here, but if we look back at the three previous formations we've had, it has the hallmark of a sell-off in the making. If we're wrong, we can't see this as a big opportunity-loss. We'll climb back in. But if we're right, we could be getting ready to head back down towards $1775.

Bottom line? We are getting out of the last 1/3 of our Silver. It's been a good run, all three legs well profitable... but the Gold picture is telling us to hit the sidelines... and the Silver picture isn't a whole lot better.

...time for a move to the sidelines.

In the above Silver chart we can see how the 100-day moving average is just holding. We're reticent to admit it, but a voice is telling us, "yeah, just enough to keep everyone in the market before we take it lower." Now that is only an opinion, and a cynical one at that...but cynicism has its role in the Silver market. You ignore it at your peril.

In the balance of risk/reward we tilt in favour of a profitable exit. We will reprise the strain from one of our great (not to mention highly successful) trading mentors, "Only fools and idiots try and call tops in markets. The rest of us just take something out of the middle and go home."

We're going home.

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