Markets crushed, why are Gold and Silver under pressure? By Todd Horwitz, Bubba Trading

 
2019-02-26

The equity markets are under unrelenting pressure and there are no signs of that stopping. Volatility is spiking and should pass the highest level since December of 2018. With the markets getting crushed why are gold and silver under pressure at the same time?

After peaking on Monday, silver making 6-month highs and Gold making multi year highs the metals have been under pressure. There are many reasons for action like this, more than likely the metals were ahead of equities pricing in the equity sell off before it happened. This action is typical in a buy the rumor sell the fact type of trading.

Gold, Silver and Platinum are all reaching support levels and should bounce. The metals should be headed back to the recent highs, the selloff was expected. Until the pattern changes the metals should be bought at support levels as we look the highs to be tested. The action will be wild and crazy, don’t get confused with correlations, watch the patterns. We are long the metals across the board for now.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary

 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.