April 20, 2020 - (Gold Market Wire) - Our strategy on Friday, which we flagged on Wednesday and Thursday, was to implement a short position if we made a closing level in the $1685-90 range. We hit the target, executed the MOC order and now we are short.

The shooting star we identified last week was the first indicator, noted in "A Tired Bull?" on Thursday.

But the general market tenor was described by additional considerations. The first was the lack of decent consolidation of the rally, i.e., failure to build enough energy, and the "frothy top" we spoke about. The second was the never-ending problems out of the EU regarding debt consolidation, which is keeping the dollar firm. Notwithstanding all of that, - markets are never reduced to a single consideration or two for more than a very brief period of time - the strong up-move in the past month was simply exhausted. The charts worked well, despite what the critics say, and gave us a good indication of where to get out of the market.

Now, in this European a.m., we see further challenges to support.

We've been down to $1671.58 already. The market looks weak and the change in trend is pronounced. The secondary trend line offers no comfort to the bulls, and is only encouraging the short side.

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Just to add to the mix, the Euro is desperately trying to hold on to the now famous $1.0858 level, which has been a pivoting point. Absent a dramatic announcement of political unity from EU member states (how long would that last anyway?) the Euro is most likely headed for another sell-off. Its recent move back up against the dollar was marked in its weakness, and right now, the stronger US Dollar is translating into a weakness in Gold. Taken as a package that still promotes our short position.

We await New York.