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

Silver and Gold Rip to the Downside

August 6, 2021 - (Gold Market Wire) - The sea change we identified several weeks ago has turned out to be right. We said then that the Bulls in the market would need to take a real break, perhaps of several weeks before establishing any length. In our report yesterday we also noted, again, that " Silver's latest attempt to work higher has failed. No surprise there. The market is starting to take on the character of failing attempts to move higher, rather than simply meandering up and down. That could be a new dynamic, and was one reason we were inclined to take a spec short,".

Well, fail it has. Silver down over 3% and Gold down over 2%, on the day. It's a bloodbath out there. The perms-bulls, once again, have been routed. A addition of 943,000 new jobs in July has sent stocks higher and taken the wind out of the Metals' sails.

the channel bottom approaches.

Our downtrending channel has been held, and much as we thought, Wednesdays' rally was a flame out. That spike move to $26.00 and its failure, was the classic 'ringing bell', meant to trap dumb length in, and it sure did work. Those spikes are always good contrary incdiators. The rally that doesn't hold, intra-day, is usually a warning sign.

Our spec short did well, although we covered early. Such are the fun and games of summer markets. As we head into the end of the week, we plan to take spec length (spec only!) for a bounce into the close, or maybe on Monday. But we maintain our general posture: the tenor of the metals market changed in mid-July, and the bounce at the end of july into August was merely a back and fill in a downtrending market. The bulls still need to stay out of this game (aside from the odd-spec, when the downtrend gets big.) The channel is meting out punishment. And we respect that. Also, we note - it is mid-August and the games come fast and thick at this time of year.

Lastly, we note that our continued Bullishness on the US Dollar has been justified. the game remains, long Dollar vs. Euro and especially vs.Sterling, and a nimble position in the Metals, without succumbing to the perma-bull disease, that we are always just a few weeks away from $5,000 an ounce. They really never learn.

...spec long here to trade out if we bounce on close, or hold to Monday, looking for a bounce to trade out. The market remains weak - but has been oversold.

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