This is the biggest pull back I have seen in Silver and Gold. Silver pulled back nearly 6 times the average daily range. The market commodity market was shaken unbelievably. It is my opinion that the gold and silver market will not give clear signals for the next 3-10 days as traders try to figure out what happened and while large hedge funds and institutions apply salve to their wounds. Luckily I tightened my stops and was not hammered nearly as much as some friends nor as much as the institutions and funds did today. Anyone holding silver futures today would have lost as much as $14,000 per full contract held today if they did not have tight stops in play. Only two of our positions got stopped out otherwise. One of those stopped out was the Usd/Zar which is heavily correlated to gold. We received a buy signal on Eur/Aud. I am very concerned about this trade due to the AUD and Gold correlation with the big gold retrace. I am not planning on taking any metal signals for the next few days. Even still, to trade my system I am taking a 1% trade long on the Eur/Aud.
I feel like most of my signals related to metals at all are going to be sketchy for the next few days. Here is a chart of my system I have been trading and developing. As you can see prior to today the signals are not quick or dramatic. This is will through the chart I have been using off by at least 4 days. It was an insane move.
Below are the current positions. I gave up a lot of equity but that money was not mine until I closed the trades. Still holding over 100% return in under a month.
Blake Young
Random Acts of Forex
