This post was just published on ZYX Short Sell Change Alert
Gold and silver are falling hard this morning. As of this writing gold is at $1596 and silver is at $27.65.
The reason behind the fall is that economic data both from the U.S. and Europe has come out better than expected. Please see the morning capsule for details.
As we have been writing, gold and silver are under the control of the momo crowd. Momo crowd is beginning to understand that better economic data means less chance of stimulus from the central banks.
Light selling by the Smart Money is being seen in both gold and silver this morning.
Our rating remains neutral with negative bias.
What To Do Now?
Those holding the gold silver arbitrage trade may continue to hold.
With the exception of bullion dealers and very short-term accomplished traders, risk reward is not favorable in trading gold and silver here. It is best to stay on the sidelines.
Our subscribers who are bullion dealers may consider maintaining less than neutral inventory and less than normal long positions.