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 Market Update

Precious Metals in Sharp Sell-Off

September 16, 2021 - (Gold Market Wire) - Gold and Silver have sold off sharply today, as the liquidation to cash commences pace. Volatility is back with a vengeance, after collapsing in August.

As we opined on Monday. "Friday's finish was a failure for the bulls, and as advised in our last missive, holding the trend line was critical for us to maintain a bullish posture. We didn't. We failed to maintain it, and, as such, we have exited the market. We are battening down the hatches." Those end of week sell-offs, where trend lines fail to get re-gained are always strong indicators, and this time around was no exception. Silver has taken a proper beating today.

a proper sell-off

Thankfully we even exited the core positions on Monday while they were still in the money. Although only speculation, there is a feeling that the Metals' sell-off may be some kind of advance warning that equities are about to reverse. We have seen this pattern before over the past 5-7 years or so. The illiquid instruments get hammered first, and then the equities follow. (That's only a speculation, mind you.) Right now, to be blunt, we would touch this market for anything, and we wouldn't be surprised, in the least, to see the $22 level properly challenged. We could well see a situation where the market takes weeks to clear, and until October is well and passed, the season of market crashes, we feel, must simply be waited out. A solid 10-20% sell of in equities, after the rally we've had, would be no real surprise. If it happens, the Metals are going to get hammered again.

So, once again, the discipline has saved our skin and actually garnered some profit. The truism remains - in a trader's market, you have to take profits along the way, and be ready to cut when things get shaky.

As for Gold...well, we can only reiterate Monday's advisory along with its chart:

"... we have slipped under the horizontal line; not encouraging."

Above is Monday's chart (please note).

Today we got the proper turn-around.

...the major downtrend - re-asserted.

And so we have stopped right on the horizontal low marked out on June 29. That is where we should pause. The question becomes, will we hold. Honestly, at this time of year, anything can happen. And that doesn't really make one want to trade. For those who like to see their lives flash in front of their faces, go ahead and buy Gold down here - for a quick bounce. We, being somewhat more conservative are happy to be sitting this market out and watching from the sidelines. It is, after all, a relatively comfortable place.

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