Bullion investors breathed a sigh of relief at the end of the day, but what if gold and silver had continued to fall instead of whipping around and inflicting such delicious pain on the bad guys? You should consider yesterday’s whipsaw an air raid drill, since the next time around, the selling might turn out to be the real McCoy. Specifically, we have a longstanding target in Silver at 22.505 (and another at 1340 in Gold) that stands ready to provide more-daunting resistance than the 21.635 pivot we leveraged for a nice scalp-trade the other day. Ideally, 22.505 will prove to be another pushover. But we will still have to be ready for whatever the bears throw at us once it’s hit, so don’t let yesterday’s exuberant turnaround distract you.
Incidentally, we’ll take a very close look at the E-Minis and Gold when stocks open Wednesday morning. Join me for a live trading session that will start at 9:15 a.m. EDT. This one will require no password, so bring a friend. Further details will be announced in the room just before the start time.