After Ben Bernanke spoke today the gold and silver markets took a beating. (maybe we were too quick in offloading our silver puts yesterday). That decision to close out the trade was made on the basis of the massive move in pre-market. Getting out at .14 was much better than hoping for a turnaround that eventually saw those weekly puts trade down to .04 cents. However, they are back today but oh well….
However, I am now evaluating both silver and gold as I have repeatedly mentioned that things can change on a daily basis and today they did. Was yesterday a bull trap? Only time will tell but there are levels that I am currently watching now to calculate my next moves. The market doesn’t want to hear that inflation is in check and that the punch bowl may be removed (despite the real stats, not the ones the government likes to push out).
Keep tight stops if you are playing this market in either direction. Of certain levels are breached in gold and silver (and I am currently assessing them) the it may necessitate going short. I will report accordingly as I see fit. Right now, it does look like the general markets are out of gas which should start to see an acceleration of selling in the indexes.
