Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold and Silver Market Update
Precious Metals Hit Hard as Dow Tumbles 3%
September 21, 2020 - (Gold Market Wire) - The Precious Metals arena is being hit for large losses today as the spill over from a weakening stock market, with the Dow Jones Industrial Average down some 3% taking its toll across the asset arena. The big hit has been where the alpha has been hiding for the retail world - namely, in Silver - which is down over 8% on the day.
The failure on Thursday was the key. As we wrote at the time, "Another day, another upside head-fake. Yesterday's chart was strictly in the Kabuki tradition and was yet another false signal that the bull was back in motion. It wasn't. As we pointed out yesterday, we were looking for a close above $1975 - the down trending line - and in the end, we got $1959.93."
On top of that, Friday's close was significantly weak, and we opted for a spec short just after the opening, which has worked out handsomely and should be closed now, or at least halved.
There's a lot of blood on the floor, and that is what a trader feasts off of. Firstly, we recognize that the chart damage is significant, and may take time to work off, and that there could well be some follow through to the downside. But only a fool wouldn't add to a core Silver position here. Not wishing to be foolish, we will add a small amount, and more at $22 and $20, in increasing amounts.
The shake out has happened and that is the opportunity. In no way is the bull market dead.