Gold is getting hammered this morning. No obvious news. There is no corresponding move in currencies. Our algorithms show that yesterday afternoon Smart Money stepped in with selling to meet heavy buying by the momo crowd.
This morning the momo crowd has continued to aggressively buy. Momo crowd’s aggressive buying is being met with aggressive selling by the Smart Money.
As we have been telling you for the last several months, there is a consistent pattern in gold trading. Smart Money consistently generates huge profits by short selling gold and silver every time the ill-informed momo crowd runs it up. After Smart Money has generated enough profits, they realize the profits by buying to cover and allow the momo crowd to run up gold and silver again to give another opportunity for Smart Money to short sell.
Those readers who have not watched our seminar Gold And Silver Post QE3 may want to take 48 minutes and watch this seminar to get better insights into precious metal markets as it relates to QE3. To get the link for the seminar, please email GoldQE3@TheAroraReport.com
Full disclosure: earlier this week we added to our short position in silver in ZYX Short Sell Change Alert.
Gold futures are at $1711, silver futures are at $33.31, and oil futures are $87.57.
S&P 500 resistance levels are 1400, 1410, and 1415; support levels are 1380, 1368, and 1358.
DJIA futures are down 38 points.
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