Equities Explode; Gold Fails To Hold Big Gains
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.
On Monday, the equities explodedhigher, tacking onto gains from last Wednesday and Thursday. The rally lookedgood except volume was missing in action, which indicates the rally is runningout of steam and should fail. Gold, after opening much higher, spent Mondaydrifting lower and closed marginally higher.
The rallies in both equities andmetals are meant to be sold for now. The up days are typically sharp moves onlight volume, which suggest these rallies are not as powerful as they appear.On Monday, gold failed exactly from where it should have, and the equities arefailing this morning
The keys for both are the same --the dollar and the VIX. The dollar looks like it's trying to break out to theupside, which will put pressure on gold and equities. Monday's failure at thetops indicates gold has a better chance to test the bottom end of the range at $1,300.We will continue to look for opportunities on the short side of gold and equities
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.