One market I had on my trade list today to short was the Copper market if we broke down below the trendline I have drawn on this chart. You can see the monster up day that is brewing here along with everything else on the board, Silver in particular is booming today. Why was I looking at selling this market, the chart looks very bullish am I an idiot?
Not displayed is the huge commercial selling that has been going on and as importantly, a big run up once again in the small speculator longs. I wrote about this in Silver and Gold recently, and so far it has not led to a top. However, when bubbles like Gold and Silver build as we have seen with other asset classes, it is impossible to know when they will end. All we know is that they will end, and will clean out the latecomers in the process.
I would love to be long Gold and Silver obviously due to the incredible moves happening there. However, there is absolutely no way I would buy them here. If you are long from a few years back, you have alot of wiggle room. I am a short term trader so I would never hold them this long anyway. Copper has now joined them with the fundamental setup for a substantial decline. However, there is no reason to short yet, at least until that trendline is broken that I have on the chart.