Another Dead-Cat Bounce For Gold
Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.
Last week was an interesting onefor the markets, as equities and gold bottomed for the week on Wednesday andhave been rallying since. Both bounced from solid support and oversoldconditions. Both are much higher this morning and should fail within a coupleof percentage points from here.
Nothing in the markets haschanged and as we have warned, there are going to be amazing rallies that lookso good you will be upset you are not in; those are the rallies to be sold inthese conditions. Look for a solid resistance level, set a stop and play theshort side of the market.
The key levels to watch in theequities are 25,500 and $1,365 in gold. Until markets close above those levels,they should be sold. The recent rally appears to be a dead-cat bounce inoversold conditions. The dollar and the VIX hold the keys. If they rally,markets are going lower.
Keep those stops tight.
Contributing 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.