Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Sell Off Continues
September 22, 2020 - (Gold Market Wire) - Silver has followed through to the downside after yesterday's dramatic sell-off, and was earlier today, posting better than a 4% loss on the day. But the market is settling down and the carnage has subsided for a while. Today's close is going to be a highly interesting affair, to see if the sellers can garner any more traction. Nasdaq shed 2% in the early hours, but has come back almost flat currently, which is making itself felt in the PM market. Today's Silver chart showed a fairly logical place for the selling to stop for a while - near the horizontal support.
So, we've had a lot of chart damage, and Silver has not disappointed us in its volatility. (Can any one trader really ever be short option premium in this Silver insane asylum?) In the big picture, from mid-June , we essentially moved from $18 to a high of $30... or $12, 50% of which we've retraced (i.e. the $6 from $30 to $24). That will probably bring in some buying and the balance of our spec short should be closed out now, if not already done on yesterday's advisory.
What now? Well, first and foremost, clear the decks and be patient. As we pointed out yesterday, additions to the core position are a must at these levels. Firepower must be kept for the possible move to $22, $20 and even $18, scaled down in larger size. From the trading side, we hit the sidelines and wait - especially for the Nasdaq and the Dow, to lead the way. There could be more downside where this all came from. While trading caution remains the word for the day, the bull market is in no way over. Volatility like this is a "new normal" to use that hackneyed phrase...but it comes in fits and starts as is intermediated by periods of meandering lethargy.