Are they Precious?
The Precious Metals took a hit today, maybe they are not so precious, we will see. Anyone reading here knows I have been calling for a top here in Mid Oct, so far so good.
I shorted this today at the indicated level, whether or not this is the precursor to something big or not, there is no way to know yet. It is a short term break of an uptrend. I mentioned this weekend that there was no sell signal in sight. There still is not from a long term perspective, this is a short term trade. We will have to see if it turns into something bigger. I have been saying now for a month or so that the largest trap that is out there is a long dollar short metals trade. The whole world is leaning the other way, or at least the individual investors are. As you have seen from my charts, the insiders are not leaning that way at all. They are leaning toward a downward move here and up in the dollar.
It will be interesting to see what happens bigger picture with this. This above entry is a short term trade, but has a decent sized target. However, if it were to leg down a large amount I would trail a stop and stay with it. There is no way to know at this point if this is anything more than just a short term break of a trendline, that will go nowhere or not. In trading you can never know that, you just have to take the trades and see what happens.