Bulls Take The Lead
Bears thought they had control of the gold markets onTuesday, taking the precious metal down over $10 before a late-day rally cutthose losses in half. In overnight trading, the bears were once again incontrol until 1:30 a.m. EST. Out of nowhere, the bulls showed up and goldrallied $18 from the lows, putting in a new three-month high.
Once again, the bears got run over by the bulls on heavyvolume. In baseball, they call it the squeeze play. You can hear the bearsworldwide squealing, wondering how they could get it wrong again. Is this justanother short squeeze or are the metals ready to break out to new levels?
Based on the volume and size of the move, a short squeezeis more likely, which could be creating a great selling opportunity. As long asgold stays under $1,330, we would expect this to be just another short-termopportunity to sell. Rallies that come from short squeezes look so good and, inmost cases, are just another opportunity to sell.
By Todd 'Bubba' HorwitzContributing tokitco.com
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.