This morning we alerted you GOLD BREAKS MOMO CROWD’S LINE IN THE SAND when gold was much higher. The momo crowd tried by aggressive buying to hold the line at $1683, but to no avail.
The momo crowd has long held that $1672 was the firewall just in case the line in the sand was temporarily broken. Well, $1672 did not hold either. Gold traded close to $1660 and has now recovered to $1669 as of this writing.
Continue to add to profits by holding our silver short trade but adding to the quantity at this time is not advisable for two reasons.
First, silver is very oversold and a bounce can occur any time. Second, we see no selling by the Smart Money.
What to do now?
Consider taking profits on a 10% tranche in SLV in the zone of $30.15-30.65. SLV has traded as low as $30.35 and is at $30.55 as of this writing. Futures equivalent is $31.60.