News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
*** GOLD MARKET WIRE ... GOLD MARKET WIRE ***
*** GOLD MARKET WIRE ... GOLD MARKET WIRE ***
***
US Producer Prices Increased by 6.6% in May... Fastest Pace in a Decade... Year-on-Year PPI Increases 5.3%
US Producer Prices Increased by 6.6% in May... Fastest Pace in a Decade... Year-on-Year PPI Increases 5.3%
***
US Bans American Banks from Purchasing Russian Sovereign Debt
US Bans American Banks from Purchasing Russian Sovereign Debt
***
*** GOLD MARKET WIRE ***
*** GOLD MARKET WIRE ***
***
Subscribe to receive our monthly report
Market Info
Feature coming soon.
Thank you for your patience

Gold Market Wire

News, analysis and commentary for gold traders and investors

Silver Market Update

Tree Shakers Emerge in Silver

May 28. 2021 - (Gold Market Wire) - As we warned yesterday, the tree shakers look like they had a set up in the reversal formation. Today, they wasted little time in taking it to the weak length. We advised yesterday to lighten up, if you had the leverage on, and that turned out to be the right play.

Our low came in at $27.39, pretty much on the horizontal, and those who lightened up had a chance to re-establish at a much better level. The horizontal held, yes - but the overhead is still there... and the Dollar may have turned away from 1.22 eur/usd. That could signal the end of the US Dollar sell-off, and that is what has sent the weak length running for cover. That combined with the Tuesday/Wednesday reversal sign was just the right mix.

...Dollar screams, "Boo!" ..and the weak length in Metals runs away. Free money for COT.

These are the times that try men's and women's patience. As it stands right now, we are inclined to stay with our length. We must recognize that the Tree Shakers are out - no doubt, and we must also acknowledge that no one is bigger than the market. The Dollar rally has sent the cowards scurrying, but heroics have no place in the markets. Still, we are inclined to stick with the position. If we turn tail every time the Dollar ticks, and COT seems fit to shake the tree, we'd be run out of the market at every possible sign of temporary weakness. As regular readers know, we are Dollar bulls here, and also Precious Metals bulls. That seeming contradiction has been one we have described ad infinitum here. The 'correlation trade is over-hyped, and any look at the long-term charts (2nd half 2018; all of 2019 and first 5 months of 2020) will show it. That's how we got here in the first place. Yes Dollar weakness helps...but it is not always essential. This time we are going to let the tree shakers do their best. We are standing.

< Previous articleHome pageNext article >
<- Go Back