I thought I might offer up one of our in house trading strategies for those that trade in Futures and Precious Metals stocks outside our firm.
We have witnessed over the years that certain events cause the metals to fall, of course there’s no such thing as a guarantee, so this needs to be taken with a grain of salt. This is not technical nor is it fundamental, but is in between to two, therefore, we call it Technimental.
The rule of thumb is this; If the President, Treasury Secretary, or Federal Reserve chairman are to speak about anything involving the monetary system, the US$ must rally and the anti-dollar trades (Gold/Silver and their respective stocks) must be slammed. Today is obviously one of those days (and possibly tomorrow as well). These can be considered a buy day.
Remember, today is the First Notice Day for March deliveries. All these bankers need to do is take their paper assets (in Gold and Silver) sell all of it and buy it back immediately at the lower prices. They clean house while everyone else is screaming “what’s going on?”
In closing, if one knows that one of these “salesmen” of the Treasuries appear in front of Congress, one should expect this pullback in metals and rally in US$ to occur. Once again, this can only be called an observance, not a recommendation. As of now, we are suggesting adding more positions (Deep in the Money Call options only in Futures).... A deep bow towards the salesmen of the Treasuries, for the obvious is here to see .... Happy Trades To You!!
Fort Wealth Trading Co LLC.