What a wild ride this is all becoming. Silver is now down 16% to $97 levels while gold is down some 7% to $4,984 on the day. The $100 mark and the $5,000 mark have both respectfully been breached. Those are some big, big psychological levels to be mindful of.
The pullback/correction is in full swing now and it is no time to be a hero. As mentioned earlier, profit-taking begets profit-taking and that is what we’re seeing here as traders rush to the exits. It’s all a cascading effect.
And as another reminder: Just as it is a fool’s errand to be picking tops, it is equally unintelligible to be trying to catch a falling knife.
The correction will end when it ends and then we can go back to looking at the fundamentals again to reassess where will be a good time to load back up on long positions. I say that because the fundamental drivers that led to the surging rally hasn’t gone away just because we’re seeing the price “crash” as such today.
From earlier:
