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 Market Update

Gold Gives Way to Lower Prices

April 21, 2020 - (Gold Market Wire) - The bears are taking control of the Gold market, as we have been expecting for the past week. Now the have solidified their grip.

We saw the weakness exposed in the European a.m. with this formation:

only a fool stays long through this formation

And, sure enough, we followed through:

yes, that's support. But we're not buyers here.

We're hanging on to the shorts established last week to see how the market pans out. Yesterday's up move was feeble, to put it nicely. With crude oil trading at ZERO and Below for WTI, being short Gold, in spec, makes sense. Especially if you hold that big long core position, trades like this are essential. Buy and hold doesn't work forever and it didn't work for Gold between 2011 and 2019. Intelligent trading did. Risk neutralization does. BTW - go ask Warren Buffet how much money he has lost in the past month. His "buy and hold" is $80 billion off-side.

That's why you need to trade sometimes. Never go around "looking for action", but never stand in front of freight train with only your 'ticket' for protection. It won't stop.

Will gold come back? Yes, it probably will. But a better entry point, the critical dimension for trading and investing, lies ahead. For those who know how to ride a short position properly, it's probably time to wait for New York before taking any profits. We acknowledge the fact that a primary motivator for owning Gold is still intact - a loss of public confidence in the security of the world around them and in government. Otherwise, Gold would be doing a partial imitation of oil, most likely. But as traders, we have to know when to pull the trigger on opening a short. Our next assignment will be finding a place to start covering.

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