August 26, 2021 - (Gold Market Wire) - Much as we suspected, the Silver market has stalled out and failed to clear horizontal resistance in confident manner. This was exactly what we were worried about yesterday, and why we took profit on our long-held spec long and cut the trading position down, also for a profit. The chart paints the picture:

So our skepticism was called for, and we planned for it well. Usually these horizontal barriers demand a blast through to knock them out of the way. They don't operate like a slow building rally, and demand real power. As always, knowing what the tempo of the market is is critical. The tempo demanded a punch through and we failed. No wonder we are trading off by 1.5% in Silver. Still, this is the final days of August, an we take that on board with equanimity. In truth, given the time of year, its a fairly meaningless event. Our profits must be taken like scalpers in environments like this, because trending is a difficult task. These days belong to COT, and all we can do is try and anticipate their plans and follow them.

The core position and the balance of the trading length remain. We have little to add. If we see a sustained move towards $23.00 we may add some length back on to the trading position, but we will, as ever, have to judge the tenor of the market at that time. In the big picture, as we emerge from the summer doldrums, it will be interesting to see if the $22.00 level gets challenged again. So far, our low was but a brief glancing scratch on August 9 - a liquidation out of the east - or, more, likely, a raid on the weak length, the tree shaking that August finds fertile ground with COT. Nothing new there.