November 24, 2020 - (Gold Market Wire) - Gold has commenced its waterfall event, and shows no signs of bottoming anytime soon. It is a proper rout now, and trying to find any kind of bottom will take time. We issued an alert on Friday that the market was heading for a washout, and that is exactly what we got. In that alert we warned:

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"The rally we looked for has failed - completely, and $1850 is about to come under attack, we feel. This is a bearish set-up of some significance. Wild eyed gamblers should stand by and get ready to run short. Regular traders can spec short, and investors should neutralize length and stand aside if they can.

The market is weak - and prone to a sharp move lower. All eyes are on $1850."

For those traders who pulled the trigger and got short, 1/3 of profit can be taken, with the rest to be held. We don't think we've seen the bottom of this down move.

All in all it was a proper traders' environment. On November 17, we established a small long against the uptrend, which then failed. We took the loss immediately - about a $16 hit. As per usual, cutting the loss immediately worked out for us. After that we hit the sidelines, and then issued the alert and prepared to short with the failure at $1850. That was a fairly easy call. As we had mentioned throughout the past weeks, the whole market was focussed on the level - and for solid reasons, as it was an obvious line of defense.

So, a closed long against a trend line failure and an open established short. When you put your ego aside, you can be prepared to recognize you were on the wrong side, close out, and get on the right side. When you have a marker, and exit strategy and are prepared to pull the trigger - especially when you are wrong. That's why it's called trading. Its not a religion...and no, you are never bigger than the market. The perm-bulls get roasted again. Nothing new there.

We continue to run the 2/3 balance of the short.