Set Up, Strategy and Likely Catalyst
OK, I was hoping the pattern might be different this time and today gives a hint it might be. As I said in my earlier post the market usually takes gold and silver down, right on cue after the FED meeting. Looks like they started today with the option expiration on Comex contracts. This may be because tomorrow after the meeting, with everyone looking for the usual takedown, they explode higher instead? We shall see. There is a clear pattern that even the bears can see and take advantage of. Both gold and especially silver, have displayed a clear pattern since the beginning of this year.(see chart below) Two months of rising prices followed by two months of correction then another two months up, followed by two months of correction. Since the lows have been higher than the previous ones, I remain bullish, but even the bears out there can take advantage of the next two months of what should be higher prices. I will follow up with my strategy and candidates for playing this likely rally.