We had an incredible week in the metals markets with political concerns, virus numbers increasing and a vaccine coming down the pipeline. The vaccine news created a knee jerk reaction resulting in a mass exit of gold (down $100), silver (down $2), and pandemic proof stocks, i.e. (Tech), while traders rushed into energy plays like crude oil, cruise ships, airlines, and financials? That is an aggressive move if you ask me.
If you have been following our risk management process and strategies for any length of time, we recommend that you continue to take down your gross exposure at the top end of the range in gold and silver. Then use these emotionally driven sell-offs to build positions back up while maintaining long-dated call spreads to catch the "big move" in Q2 of 2021 when I expect CPI to hit 2.2% and gold to hit 2275/oz. Remember, these markets are going to keep cycling back and forth, so "Float like a butterfly, sting like a bee ~ Ali."
With 2021 around the corner, we are sending out a complimentary 2021 Futures Calendar & Reference Guide with a limited supply. The guide is your go-to resource for government & industry report dates, contract specifications, futures, and options expiration dates. *Available to U.S. residents only. You can request yours here: Blue Line Futures 2021 Pocket Calendar.
You are probably wondering why this article's title is "$1850 Gold - Do or Die," and it is because we have tested that four-star support level eight times! How many times have you seen a level withstand eight tests? With that said, traders must prepare for the next three-star support near 1829-1825 if our four-start support does not hold at 1850. If you would like to be up to date on the developments and strategies we are deploying, please register for a Free two-week trial by clicking on the link here: The Blue Line Express Two-Week Free Trial Sign up.
PHILLIP STREIBLE Chief Market Strategist www.bluelinefutures.com Main: 888-441-8555 Direct: 312-858-7303 Fax: 888-370-2221 Blue Line Futures LLC 141 W. Jackson #2845 Chicago IL 60604
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.