Overnight Buy Stops were trigged in Precious Metals.
1280 and 16.95 sent both Metals higher overnight – shorts exited as their stops were hit.
1290, 1300 and 1307 are the next levels – 1338 remains open if these buy stops are triggered.
For Silver the overhead Buys remain 17.00, 17.25 & 17.40.
Profits targets for Gold and Silver remain – $1291 & 17.39
The USD/YEN pair is targeting 109s… will it get there… we will see.
For the S&P, a large number of Puts have been bought. Protection is being placed for hedge – one week ahead of OpEx.
We should see everything extend for now and then reverse rather dramatically. This is a very large trap, one that will see the Dow hit it’s target between 23,000 – 23,300. For it appears negative, but the response to outside influence has been minimal at best.
Positioning back to short once I see Momentum turn. This will add fuel to the downside for the Precious Metals Complex once it completes its profit targets.
Buying momentum dried up, the COT turned again (Hedged for downside), the Broad Equities hit weakness congruent with 2015 and 2016.
Protection trades are ongoing in all Indices – VIX, Bonds, Metals, Equities and Energy.
The Indices are in trouble, it will be fascinating to watch how they resolve.