September 30, 2024 - (Gold Market Wire) - Global financial markets are coming under pressure as the third quarter closes. The metals, specifically, are also starting to come under pressure, after a solid run which has posted all time highs, yet again, in Gold. But as we look to our leading indictor - Silver - we see the cracks appearing.

Friday's close, with the touchdown on the Power Uptrend Line looked like we might just hold. But today has cast a shadow over the markets. A 5% blow-out in Japanese equities, now slowly recovering, as money drains into China, trying to back ride the big Bank of China stimulus, has left the markets like Europe under pressure. Almost all European equities are trading down.

Silver in September has been a solid play. We were rather late to the party from the trading side, but got a piece of the upside. Now, how ever, after little more than a scalp, we are on the sidelines and flat again. To be more precise, the end of the power uptrend in Silver has told us to exit, and the plethora of news across the board in equities, save China, has us concerned. War in Lebanon isn't helping.

As readers here know, we hold September and October to be months of caution. We remain concerned that an equity sell-off could be in the making, and Japan hasn't done anything to allay that concern. Right now, we seem to approaching a nexus. Flat and in cash is the name of the trading book. Core positions haven't changed. The general economy of the west is weak, and its leader, America, is beset by what can only be called 'serious' political problems.

We await a long expected shake-out to establish length in the metals. We still think we are going to get one in October, but must concede that the US election now appears to be the only thing that matters. When things like that happen, we might search around for cheap strangles to buy, but we doubt we'll find any. Barring that - its back to the sidelines. Our only possible spec here and now, is from the short side.