December 21, 2020 - (Gold Market Wire) - Planetary alingments and Winter Solstice notwithstanding, we warned that the Asian opening move higher would get many people to chase the market, and that some fingers would get burned. And indeed, they did. Silver soared...and then came back down to earth. Here's a 30-minute chart of Silver...just to give you a cardio workout.

So everyone who gave chase, got whipsawed...and bad this time. If you leveraged up on a "this is it!" line of reasoning, you've likely had the ride of a lifetime...and the day is still young. We've had a 10% range this morning. Welcome to the Silver market, if this is new to you.

Gold had a more casual response, but it was still exciting.

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And so, after all of that fire and brimstone, we will return to our regularly scheduled program. A little less caustically, we will return to the market proper, and the battle for the 50-day moving average in Gold. Now that we've scared the weak length out of the market and seen the market dole out a few heart attacks and tears, we're getting much more comfortable about establishing length. We need to see the 50-day hold. That is the mission for today.

This type of action is exactly why we recommended (option) strangles last week. If you put them on, and set your gamma targets, you've made a bundle this a.m. And yes, we know that a straddle would have been even nicer...but on a risk/reward basis, the strangle fit the bill nicely.