Gold and Silver have a Dead Cat Bounce
After the metal’s recent five percent rally Gold and Silver have managed to hold support and bounce from the lows. This morning gold and silver are higher, which we see a dead cat bounce in a market that is probably going to work there way lower.
The overall pattern has turned bearish however the selloff has not turned our algorithm to the short side yet. We are still long the metals although we realize the probabilities are that lower prices are coming. The metals are one down day from reversing to the short side.
These patterns appear in all markets which is why we don’t talk about the news. The news is more often than not priced in to markets long before it ever hits the tape. If you trade the news you will lose. Follow the market footprints, they are like a map and will guide you to the correct side of the market.